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LOUISIANA Comprehensive Annual Financial Report For the fiscal year ended June 30, 2018

LOUISIANA Comprehensive Annual Financial Report For the fiscal year ended June 30, 2018

This public document is published at a total cost of $1,429.25. One hundred twenty five (125) copies of this public document were published in this first printing at a cost of $1,429.25. The total cost of all printings of this document including reprints is $1,429.25. This document was published by OTS-Production Support Services, 627 North 4th Street, Baton Rouge, LA 70802 for the Division of Administration, Office of Statewide Reporting and Accounting Policy, to report the financial condition of the State for the fiscal year ended June 30, 2018 under authority of LRS 39:80. This material was printed in accordance with the standards for printing by state agencies established pursuant to LRS 43:31. Printing of this material was purchased in accordance with the provisions of Title 43 of the Louisiana Revised Statutes.

State of LouisianaComprehensive Annual Financial Report

for the Year Ended June 30, 2018

JOHN BEL EDWARDSGovernor

Prepared ByDIVISION OF ADMINISTRATION

JAY DARDENNECommissioner

On the CoverPicture taken at Sauvage National Wildlife Refuge which is the largest urban National Wildlife refuge in the United States and sadly, it is becoming one of the last remaining marshes in these parts. It is a 23,000-acre region of fresh and brackish marshes located within the city limits of New Orleans 15 minutes from the French Quarter. Bayou Sauvage supports over 340 bird species, including wading and secretive marsh birds dependent on the refuge for survival. There are also healthy populations of alligators, turtles, otters, fish, and other wild animal species. It is a popular place to enjoy fishing, hiking, paddling, bird watching, nature photography, youth waterfowl hunting, self-guided tours, and interpretive and educational programs. Mark Fradella retired from the Louisiana Department of Public Safety and Corrections in 2017 after serving the State of Louisiana for 25 years. Having a lifelong passion for photography and in anticipation of retiring, he and his wife launched Fradella Photography in 2015. They focus on family portraits, senior portraits and wedding photography. He is also passionate about photographing landscapes, wildlife and people. “It is such a great feeling when I click the shutter button, look in the view finder, and realize that the image that I just captured will be inspirational and appreciated by others. Ultimately my hope is that my work will encourage people to slow down, take a look around, and appreciate both the natural and created wonders that are all around them.”

John Bel Edwards

Governor

State of Louisiana

State of Louisiana

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CONTENTS

PageI. INTRODUCTORY SECTION

Letter of Transmittal ......................................................................................................................................1Principal State Officials .................................................................................................................................8State Organizational Chart............................................................................................................................9

II. FINANCIAL SECTION

Independent Auditor's Report .................................................................................................................11

Management’s Discussion and Analysis................................................................................................17

Basic Financial Statements

Government-wide Financial Statements

Statement of Net Position .................................................................................................................26Statement of Activities.......................................................................................................................28

Governmental Fund Financial Statements

Balance Sheet...................................................................................................................................29Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ...........30Statement of Revenues, Expenditures, and Changes in Fund Balances .........................................31Reconciliation of the Change in Fund Balances of Governmental Funds

to the Statement of Activities .........................................................................................................32

Proprietary Fund Financial Statements

Statement of Net Position .................................................................................................................33Statement of Revenues, Expenses, and Changes in Net Position ...................................................34Statement of Cash Flows ..................................................................................................................35

Fiduciary Fund Financial Statements

Statement of Fiduciary Net Position..................................................................................................37Statement of Changes in Fiduciary Net Position...............................................................................38

Component Unit Financial Statements

Combining Statement of Net Position ...............................................................................................40Combining Statement of Activities ....................................................................................................42

State of Louisiana

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Notes to the Basic Financial Statements

Note 1 – Summary of Significant Accounting Policies ....................................................................43Note 2 – Deposits and Investments ................................................................................................56Note 3 – Accounts Receivable and Accounts Payable ...................................................................72Note 4 – Intra-Entity Transactions...................................................................................................74Note 5 – Capital Assets...................................................................................................................76Note 6 – Employee Benefits – Pensions.........................................................................................77Note 6A – Employee Benefits – Other Postemployment Benefits (OPEB) .......................................84Note 7 – Leases ..............................................................................................................................91Note 8 – Long-term Obligations ......................................................................................................92Note 9 – Contingencies and Commitments.....................................................................................98Note 10 – Fund Balance/Net Position Disclosures .........................................................................102Note 11 – Tax Abatement Programs...............................................................................................105 Note 12 – Other Disclosures ...........................................................................................................117Note 13 – Subsequent Events ........................................................................................................117

Required Supplementary Information Other Than Management’s Discussion and Analysis

Budgetary Comparison Schedule – General Fund ............................................................................119Note to Required Supplementary Information – Budgetary Reporting ...............................................120Pension Plans – Schedule of Cost Sharing Plan Contributions .........................................................122Pension Plans – Schedule of Cost Sharing Proportionate Share of the Net Pension Liability...........124Pension Plans – Schedule of Changes in Net Pension Liability and Related Ratios .........................126Pension Plans – Schedule of Single Employer Plan Contributions....................................................128Other Postemployment Benefits Plans – Schedule of Funding Progress ..........................................130

Budgetary Comparison Schedule – Major Debt Service Fund

Budgetary Comparison Schedule – Bond Security and Redemption Fund - Budget to Actual (Non-GAAP Budgetary Basis) .............................................................................133

Combining and Individual Fund Statements

Governmental Funds

Combining Balance Sheet...............................................................................................................136Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .......………...140

Proprietary Funds

Enterprise FundsCombining Statement of Net Position .............................................................................................144Combining Statement of Revenues, Expenses, and Changes in Net Position ...............................146Combining Statement of Cash Flows..............................................................................................148

Internal Service FundsCombining Statement of Net Position .............................................................................................152Combining Statement of Revenues, Expenses, and Changes in Net Position ...............................154Combining Statement of Cash Flows..............................................................................................156

State of Louisiana

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Fiduciary Funds

Combining Statement of Fiduciary Net Position – Pension Trust Funds ........................................158Combining Statement of Changes in Fiduciary Net Position – Pension Trust Funds .....................159Combining Statement of Fiduciary Net Position – Investment Trust Funds....................................160Combining Statement of Changes in Fiduciary Net Position – Investment Trust Funds.................161Combining Statement of Fiduciary Net Position – Private Purpose Trust Funds………..…....….…162Combining Statement of Changes in Fiduciary Net Position – Private Purpose Trust Funds…………….………………….……………….………………………….163Combining Statement of Fiduciary Assets and Liabilities – Agency Funds ....................................164Combining Statement of Changes in Assets and Liabilities – Agency Funds.................................165

Component Units

Combining Statement of Net Position .............................................................................................168Combining Statement of Activities ..................................................................................................171

III. STATISTICAL SECTION

Statistical Section Index............................................................................................................................173Net Position by Component, Last Ten Fiscal Years .................................................................................174Changes in Net Position, Last Ten Fiscal Years.......................................................................................176Fund Balances, Governmental Funds, Last Ten Fiscal Years..................................................................180Changes in Fund Balances, Governmental Funds, Last Ten Fiscal Years ..............................................182Individual Income Tax, Last Ten Fiscal Years ..........................................................................................184Personal Income - Earnings by Major Industry, Last Ten Calendar Years ...............................................187Tax Rate by Major Sources of Revenue...................................................................................................188Ratios of Outstanding Debt by Type, Last Ten Fiscal Years ....................................................................190Legal Debt Margin and Debt Limitations, Last Ten Fiscal Years ..............................................................192Pledged Revenue Bond Coverage, Last Ten Fiscal Years.......................................................................194Demographic and Economic Statistics, Last Ten Calendar Years ...........................................................196Principal Employers, Current Year and Nine Years Ago ..........................................................................197Louisiana State Employees by Function/Program, Last Ten Fiscal Years ...............................................198Operating Indicators by Function/Program, Last Ten Years.....................................................................200Capital Assets Statistics by Function/Program, Last Ten Fiscal Years ....................................................202Acknowledgments.....................................................................................................................................203

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I . INTRODUCTORY SECTION

2017-2018 Comprehensive Annual Financial Report

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Office of the Commissioner

State of Louisiana

Division of Administration

JOHN BEL EDWARDS JAY DARDENNE Commissioner of Administration

December 28, 2018

To: The Honorable John Bel Edwards, Governor,

Members of the Legislature, and the

People of the State of Louisiana

It is my privilege to present the State of Louisiana’s Comprehensive Annual Financial Report

(CAFR) for the fiscal year ended June 30, 2018. State law requires that the CAFR be prepared for the State

within six months after the close of each fiscal year. The report was prepared in conformity with Generally

Accepted Accounting Principles (GAAP) as prescribed by the Governmental Accounting Standards Board

(GASB).

The Division of Administration is responsible for the accuracy, completeness, and fair presentation

of the data, representations, and disclosures presented in the CAFR. To the best of our knowledge and

belief, the data presented is accurate in all material respects, reported in a manner designed to fairly present

the financial position and results of operations, and provides disclosures necessary to enable the reader to

gain an understanding of the financial activities and condition of the State.

The Division of Administration and fiscal management at each entity included in the CAFR are

responsible for establishing and maintaining internal controls designed to ensure that assets are protected

from loss, theft, or misuse and that accurate and complete accounting data are compiled to provide for the

preparation of financial statements in conformity with GAAP. Internal controls are designed to provide

reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance

recognizes that the cost of a control should not exceed the benefits likely to be derived, and the valuation

of costs and benefits requires estimates and judgments by management. All internal control evaluations

occur within this framework. We believe that the internal accounting controls of the State adequately

safeguard assets and provide reasonable assurance of proper recording and reporting of financial

transactions.

The basic financial statements have been audited by the Louisiana Legislative Auditor and

unmodified (“clean”) opinions have been issued on the financial statements for the year ended June 30,

2018. This audit report is located at the front of the “Financial Section” of this report.

The Honorable John Bel Edwards, et al.

December 28, 2018

Page 2

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The independent audit of the basic financial statements of the State of Louisiana was part of a

broader, federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies.

The standards governing Single Audit engagements require the independent auditor to report not only on the

fair presentation of the basic financial statements, but also on the internal controls of the government and

compliance with legal requirements, with special emphasis on internal controls and legal requirements

involving the administration of federal awards. These reports are available in the separately issued Single

Audit Report for the State of Louisiana.

Management’s Discussion and Analysis (MD&A) immediately follows the independent auditor’s

report and provides a narrative introduction, overview, and analysis of the basic financial statements.

MD&A complements the letter of transmittal and should be read in conjunction with it.

PROFILE OF THE GOVERNMENT

Located on the Gulf of Mexico and bordered by Arkansas, Texas, and Mississippi, Louisiana serves

a population of 4,684,000. The powers of government of the state are divided into three separate branches:

legislative, executive, and judicial. Except as otherwise provided by the Louisiana Constitution, no one of

these branches, or any person holding office in one of them, shall exercise power belonging to another

branch.

The State provides a variety of services to citizens including education, health care, public safety,

road and highway development and maintenance, and recreation. These services are financed primarily

through taxes, fees, mineral royalties, and federal revenues, which are accounted for by various funds

(general fund, special revenue funds, capital project funds, etc.).

The State’s financial reporting entity includes 57 active component units, which are reported

discretely in the financial statements. These component units include colleges and universities, boards and

commissions, ports, levee districts, and other special purpose authorities.

Final financial control is exercised through the budgetary system. Financial statements are presented

in conformity with GAAP and are also presented on a non-GAAP budgetary basis to demonstrate legal

compliance. Variances between the GAAP and non-GAAP budgetary presentations are caused by

differences in reporting entity, accounting basis, and perspective. The budgetary process is further

described in Note 1 of the basic financial statements and the reconciliation between GAAP and non-GAAP

budgetary basis fund balances is presented as required supplementary information.

ECONOMIC CONDITIONS AND OUTLOOK

Louisiana is a major energy producing state. In fact, Louisiana is ranked second in the nation in

production of both oil and natural gas if the Gulf waters are included. When energy prices are strong, the

state prospers. When oil prices are declining, the economy weakens – especially for certain areas of the

State. Louisiana is finally emerging from a 28-month recession that cost Louisiana more than 23,000 jobs.

The state’s economy began to grow again in 2018. The forecast for 2019-20 is undergirded by the

assumptions that (1) the national economy will expand at a healthy rate (though threats from tariffs and


December 28, 2018

Page 3

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International Maritime Organization 2020 are unsettling), (2) inflation and interest rates will rise a bit but

remain unthreatening, (3) oil prices will rise gradually from $65 per barrel this year to $80 in 2020, and (4)

natural gas prices will decline slightly and continue to fuel a remarkable industrial boom in Louisiana. That

industrial boom and a revived oil and gas industry should produce a nice recovery from the recession, with

2020 being particularly strong for the state. In total, the State is projected to add 23,400 jobs in 2019 (up

1.2%) and another 36,100 jobs in 2020 (up 1.8%).

Louisiana is home to nine metropolitan statistical areas (MSA), each with unique demographic and

economic profiles. Essentially, the State is split into three regions: (1) the rapidly expanding Baton Rouge

and Lake Charles regions; (2) the northern tier of the state; and (3) an oil patch region that is projected to

increase through 2020. The economic outlook for each region is forecasted as follows:

Louisiana’s largest MSA, New Orleans, is projected to be the seventh fastest growing MSA of

the state, adding 6,500 jobs (1.1%) in 2019 and 9,100 jobs (1.6%) in 2020. Huge industrial

projects, especially to the west in St. James Parish, will drive this growth. Very upbeat LNG and

methanol industries will be the key to this resurgence. Nice infusions from the tech sector,

including the 2,000+ DXC Technology, iMerit, and Accurent and big hires at Michoud will add

another bump.

After a brief lull in industrial projects in the Baton Rouge MSA several major projects will begin

in fiscal year 2020, providing a major boost to the construction sector. This MSA is expected

to tie for second place in economic growth over the next two years, adding 6,000 jobs in 2019

(+1.5%) and another 8,100 in 2020 (+1.9%). More than half a billion dollars in road projects,

including widening of I-10 from the bridge to the split will also infuse the construction sector.

After almost a decade of decline, the Shreveport-Bossier MSA is projected to return to a positive,

though modest growth mode over the next two years. This MSA is projected to add 600 jobs a

year or an annual growth rate of 0.3%, ninth among the state’s nine MSAs. While activity at

the Port of Shreveport-Bossier and the tech facility CSRA remain a bright spot in this economy,

the region suffers from a lack of major announcements supporting the next two years.

The rise of oil prices to $80 a barrel is expected to revive the Lafayette MSA. That, combined

with solid performance by the MSA’s Big Five—Stuller, Acadian Ambulance, the Schumacher

Group, GCI, and LHC—is expected to generate 1,400 new jobs (+0.7%) in 2019 and a more

robust 4,900 jobs (+2.4%) in 2020.

In Houma MSA, fabricators and shipbuilders are making a reasonably successful shift to non-

extraction-related customers. An oil price of $80 a barrel by 2020 is expected to start a serious

revival in the Gulf by 2020. This MSA is projecting 700 new jobs (+0.8%) in 2019 and a

healthier, extraction-driven bump of 2,100 jobs (+2.4%) in 2020.

The Lake Charles MSA is the fastest growing MSA in the country over 2013-2018. There is

documented almost $117 billion in projects announced for this region since 2012. About half


December 28, 2018

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of those projects have yet to start construction but will in the mid 2019 when three LNG projects

are expected to go vertical. Lake Charles is expected to continue in its role as the fastest growing

MSA in the state, adding 4,000 jobs (+3.3%) in 2019 and another 5,300 jobs (+4.3%) in 2020.

Chase Mortgage Processing, IBM, Graphics Packaging and Vantage Health Plan provide

stability to the Monroe MSA. There is concern about the future of Century Link post-merger.

The projection for new jobs are 400 in 2019 (+0.5%) and 200 more in 2020 (+0.3%)

A special 2-year IT project at Cleco in the Alexandria MSA will be ending in 2019. Key

industries like Union Tank Car, P&G, Crest Industries, and Cleco will remain a steady base for

the region. Temporary IT jobs at Cleco should keep the region’s growth rate flat in 2019, and

about 500 new jobs (+0.8%) are projected for 2020.

Louisiana’s smallest MSA is Hammond. Hammond’s record of adding about 600 jobs a year

since 2015 is expected to continue in fiscal year 2020 adding 800 jobs, a very nice growth rate

of 1.7% a year.

The information for the economic discussion is from The Louisiana Economic Outlook: 2019 and 2020, by

Loren C. Scott and Judy S. Collins, published in September, 2018.

Major Fiscal Initiatives

Louisiana’s fiscal situation improved during fiscal year 2018. After years of deficits, the state ended

the budget year in the black for the second year in a row, registering an estimated $300 million surplus

without encountering mid-year budget cuts. The administration once again worked to establish a more

balanced and fair tax system providing sufficient revenues to fund government, but the goal remained

elusive. The Legislature agreed to continue 4.45 cents of a 5-cent state sales tax until 2025 instead of a

short-term, temporary fix. This move has already improved the state’s standing with bond rating agencies

by providing more year-to-year budget stability sought by the administration. Taxpayers are actually paying

less in state sales tax.

The administration continued its commitment to honest budgeting practices, refusing to use one-time

money for recurring expenses or fund sweeps to plug holes. In budget development, the administration

continued efforts to identify efficiencies and savings. Adequate funding for education and health care

remained top budget priorities. A healthy and educated work force is key to Louisiana’s future in terms of

quality of life for its residents and bringing jobs to the state.

Some initiatives in fiscal year 2018 that resulted in major fiscal impacts included the state taking

action by:

Reducing the state’s capital construction program, making it more realistic and better aligned

with the state’s ability to fund it. The bond portion of the program dropped from $3.96 billion


December 28, 2018

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to $1.9 billion. The program is back to a manageable process similar to the early 2000’s,

directing surplus toward deferred maintenance instead of embarking on new projects.

Continuing the transition into a more modern financial and budget development system.

Continuing implementation of a single point of entry system to apply for health and social

services programs, i.e., Medicaid, SNAP, and TANF, leading to efficiencies and fraud

prevention due to cross-checks that determine applicant eligibility.

Reducing the waiting list for thousands of people with developmental disabilities seeking access

to Medicaid-funded community-based services by updating the system.

Developing “shovel ready” projects in order to receive $80 million in additional federal highway

funds that were not used by other states or national programs. This is the largest amount the

state has ever received.

Identifying and reducing third party contracts.

Increasing transparency in the financial operations of state government by introducing Louisiana

Checkbook, a searchable website that allows citizens to see a greater level of detail on how and

where taxpayer dollars are spent.

Relevant Financial Policies

Louisiana’s Constitution requires the State to pass a balanced operating budget. The Constitution

also provides for an annual expenditure limit to control the rate of spending. The expenditure limit is

determined each fiscal year and is established during the first quarter of the calendar year for the next fiscal

year. The limit is equal to the expenditure limit from the previous fiscal year multiplied by a positive growth

factor. The growth factor is the average annual percentage rate of change of personal income for Louisiana

as defined and reported by the United States Department of Commerce for the three calendar years prior to

the fiscal year for which the limit is calculated.

The State has restrictions on how revenues designated as “non-recurring” can be spent since these

revenues cannot be relied on in future budget periods. Constitutionally established percentages of

nonrecurring revenues are required to be deposited in the Budget Stabilization Fund and paid to fund the

actuarially accrued liability of State pension plans. Any remaining amounts of non-recurring revenues may

be used for purposes provided for in the Constitution including but not limited to the repayment of bonds

in advance of maturity, additional payments to fund the unfunded accrued liability of the State pension

plans, funding for capital outlay projects in the comprehensive state budget, and funding for conservation

and restoration efforts for Louisiana’s coast.

To aid the State in balancing its budget in years of declining revenue, the Budget Stabilization Fund

was created. The fund was created in the 1990s and receives its monies from excess mineral revenues, non-

State of Louisiana

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PRINCIPAL STATE OFFICIALS

Executive (Elected) Legislative (Elected)

John Bel Edwards Taylor F. BarrasGovernor Speaker of the House of Representatives

William “Billy” H. Nungesser John A. Alario, Jr. Lieutenant Governor President of the Senate

R. Kyle ArdoinSecretary of State

Jeff Landry Judicial (Elected)Attorney General

John M. Schroder, Sr. Bernette J. JohnsonTreasurer Chief Justice of the Supreme Court of Louisiana

Dr. Mike StrainCommissioner of Agriculture and Forestry

James J. Donelon Commissioner of Insurance

Executive (Appointed)

Marketa Garner WaltersSecretary of Children and Family Services

William “Billy” H. NungesserSecretary of Culture, Recreation, and Tourism

Don PiersonSecretary of Economic Development

John WhiteState Superintendent of Education

Dr. Chuck BrownSecretary of Environmental Quality

Dr. Rebekah E. GeeSecretary of Health

Tom HarrisSecretary of Natural Resources

James M. LeBlancSecretary of Public Safety and Corrections

Colonel Kevin ReevesDeputy Secretary of Public Safety and CorrectionsSuperintendent, Office of State Police

Brandon FreySecretary of Public Service Commission

Kimberly Lewis RobinsonSecretary of Revenue

Byron Decoteau, Jr.Director of State Civil Service

Dr. Shawn WilsonSecretary of Transportation and Development

Joey StricklandSecretary of Veterans Affairs

Jack MontoucetSecretary of Wildlife and Fisheries

Ava DejoieExecutive Director of Louisiana Workforce Commission

State of Louisiana

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STATE ORGANIZATIONAL CHART

Department of Economic

Development

Department of Insurance

Department of State

Department of Agriculture and

Forestry

Department of Veterans Affairs

Department of Justice

Department of the Treasury

Office of the Lieutenant Governor

Department of Culture,

Recreation, and Tourism

Governor

Department ofEducation

Department of Environmental

Quality

Department of Health Department of

Natural Resources

Department of State Civil

Service

Department of Public Safety

and Corrections

Department of Transportation

and Development

Department of Public Service

Department of Wildlife and

Fisheries

Department of Revenue

Louisiana Workforce

Commission

Department of Children and

Family Services

Electorate

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I I . FINANCIAL SECTION


LOUISIANA LEGISLATIVE AUDITOR

DARYL G. PURPERA, CPA, CFE

1600 NORTH THIRD STREET • POST OFFICE BOX 94397 • BATON ROUGE, LOUISIANA 70804-9397

WWW.LLA.LA.GOV • PHONE: 225-339-3800 • FAX: 225-339-3870

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December 28, 2018

Independent Auditor’s Report

Honorable John Bel Edwards, Governor Honorable John A. Alario, Jr., President, and Members of the Senate Honorable Taylor F. Barras, Speaker, and Members of the House of Representatives State of Louisiana Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the state of Louisiana, as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the state’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of certain pension trust funds, enterprise funds, and component units of government included within the basic financial statements of the state of Louisiana, which represent the following percentages of their related opinion units:

December 28, 2018 Page 2

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Percentage ofTotal Assets Percentage of Percentageand Deferred Expenditures/ of RevenuesOutflows of Expenses (Including (Including

Opinion Unit Resources Deductions) Additions)

Business-Type Activities 15.15% 7.41% 8.68%Aggregate Discretely Presented Component Units 53.15% 15.90% 25.77%Aggregate Remaining Funds (includes pension trust funds) 82.48% 53.90% 58.12%

Those financial statements were audited by other auditors whose reports have been furnished to us, and our opinions, insofar as they relate to the amounts included for the previously mentioned pension trust funds, enterprise funds, and component units, are based solely on the reports of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. The financial statements of the LSU Foundation, the Tiger Athletic Foundation, the LSU Health Sciences Foundation in Shreveport, and the Stephenson Technologies Corporation, all component units of the Louisiana State University System (major component unit); and the University Facilities, Inc., the University of Louisiana at Monroe Facilities, Inc., the Black and Gold Facilities, Inc., and the NSU Facilities Corporation, all component units of the University of Louisiana System (major component unit), which were audited by other auditors upon whose reports we are relying, were audited in accordance with auditing standards generally accepted in the United States of America but not in accordance with Government Auditing Standards. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.


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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, based on our audit and the reports of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the state of Louisiana, as of June 30, 2018, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matters As disclosed in note 6 to the financial statements, the total net pension liability for governmental and business-type activities was approximately $6.4 billion at June 30, 2018, as determined by certain state and statewide pension systems. The related actuarial valuations were performed by the pension systems’ actuaries using various assumptions. Because actual experience may differ from the assumptions used, there is a risk that this amount at June 30, 2018, could be under or overstated. As disclosed in note 6 to the financial statements, the primary government’s proportionate share of the Louisiana State Employees’ Retirement System’s (LASERS) net pension liability was $5.6 billion at June 30, 2018. The actuarial valuation of the total pension liability is very sensitive to the underlying actuarial assumptions, including a discount rate as of June 30, 2017, of 7.70%. A 1% reduction in the current discount rate would increase the primary government’s net pension liability by $1.4 billion. For future valuations, LASERS currently intends to reduce the current 7.70% discount rate by 0.05% annually, until it reaches 7.50%. As disclosed in note 6 to the financial statements, the actuarial valuation of the total pension liability for LASERS does not include projections for future ad hoc cost-of-living adjustments (COLA). LASERS determined these COLAs are not substantively automatic and, therefore, future COLAs were not included in the valuation. Statutory provisions should be met and approval of both the Legislature and the Governor is required to grant a COLA. The inclusion of future COLAs in the valuation would increase the net pension liability. As discussed in notes 10-C and 12-B to the financial statements, the state implemented Governmental Accounting Standards Board Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (OPEB) – superseding portions of GASB Statement No. 45 and GASB Statement No. 57, for the year ended June 30, 2018. The adoption of this standard requires the state to report its actuarially-determined total OPEB liability, restating the previous year. As a result of the implementation, the net position for governmental activities decreased by $3.2 billion as of July 1, 2017.


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As discussed in note 10-C to the financial statements, the state recorded its liability for the Coastal Protection and Restoration Authority’s cost share relating to two project partnership agreements with the United States Army Corps of Engineers to construct and improve the levee systems in the greater New Orleans area. As a result, the net position for governmental activities decreased by $1.5 billion as of July 1, 2017. Our opinions are not modified with respect to the matters emphasized above. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that Management’s Discussion and Analysis and the Required Supplementary Information Other Than Management’s Discussion and Analysis presented on pages 17 through 24 and 119 through 131, respectively, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We and other auditors have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary and Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the state of Louisiana’s basic financial statements. The accompanying Introductory Section (pages 1 through 9), the Budgetary Comparison Schedule - Budget to Actual - Bond Security and Redemption Fund (page 133), the Combining and Individual Fund Statements - Nonmajor Funds (pages 136 through 171), and the Statistical Section (pages 173 through 202) listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. The Combining and Individual Fund Statements - Nonmajor Funds are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the


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basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America by us and other auditors. In our opinion, based on our audit, the procedures performed as described above, and the reports of other auditors, this information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The Introductory Section, the Budgetary Comparison Schedule - Budget to Actual - Bond Security and Redemption Fund, and the Statistical Section have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them. Medicaid Eligibility Federal regulations provide for Medicaid eligibility determinations for certain individuals based on a methodology using federal income tax data known as modified adjusted gross income (MAGI). During the fiscal year ended June 30, 2018, the state’s Medicaid Program paid $5.4 billion to managed care organizations to provide Medicaid benefits to approximately 1.2 million recipients who were determined eligible based on MAGI. The Louisiana Department of Health (LDH) did not use federal tax data to verify critical Medicaid and LaCHIP eligibility factors, increasing the risk that applicants could be determined eligible when they are ineligible. As of the issuance of this report, we have been unable to verify the eligibility of these MAGI-determined recipients because federal and state laws prohibit our use of federal or state income tax records for these purposes. Considering rising state health care costs and limited budgets, it is important to ensure that Medicaid dollars are spent appropriately. Proper and timely eligibility decisions are critical to ensure LDH does not expend state and federal funds for ineligible individuals. In the event the federal government identifies ineligible participants based on the income requirements, the costs could be disallowed requiring the state to return the federal share of those Medicaid costs to the federal government, resulting in a liability to the state.


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Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, a report on our consideration of the state’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters will be issued under separate cover in the State of Louisiana Single Audit Report. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report, upon its issuance, is an integral part of an audit performed in accordance with Government Auditing Standards in considering the state’s internal control over financial reporting and compliance.

Respectfully submitted, Daryl G. Purpera, CPA, CFE Legislative Auditor

BF:BQD:EFS:ch CAFR2018

M A N A G E M E N T ’ S D I S C U S S I O N A N D A N A L Y S I S


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MANAGEMENT’S DISCUSSION AND ANALYSIS

Management’s Discussion and Analysis (MD&A) of the financial performance of the State of Louisiana presents a narrative overview and analysis of the financial activities of the State for the year ended June 30, 2018. This document focuses on the current year’s activities, resulting changes, and currently known facts. Please read this document in conjunction with the additional information contained in the Transmittal Letter presented on pages 1-6 and the financial statements of the State, which begin on page 26.

FINANCIAL HIGHLIGHTS

The State’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources at the close of the fiscal year by $2.2 billion, a decrease of 64.7% from the prior fiscal year.

The State experienced a $4 billion decrease and a $73.4 million decrease in net position for governmental activities and business-type activities, respectively. The decreases in net position include restatements, which are discussed in further detail in the Government-wide Financial Analysis section of MD&A and in Note 10.

Actual budgetary basis revenues of General Fund taxes, licenses and fees exceeded actual expenditures resulting in an approximate $308 million surplus at the end of fiscal year 2018.

OVERVIEW OF THE FINANCIAL STATEMENTS

This discussion and analysis is an introduction to the Basic Financial Statements of the State of Louisiana, which are comprised of the following:

Government-wide financial statements Fund financial statements Notes to the basic financial statements

This report also contains Required Supplementary Information and Other Information in addition to the Basic Financial Statements.

Reporting the State as a Whole


The government-wide financial statements are designed to provide readers with a broad overview of the finances of the State of Louisiana as a whole, and are prepared in a manner similar to a private sector business. The statements provide both short-term and long-term information about the net position of the State which helps in assessing the economic condition of the State at the end of the fiscal year. These reports are prepared using the flow of economic resources measurement focus and the accrual basis of accounting by taking into account all revenues earned and expenses incurred in the fiscal year regardless of when cash is received or paid.

Two financial statements are presented beginning on page 26 to assist the reader in assessing the State’s financial position as a whole. First, the Statement of Net Position, presents the State’s financial position – called net position – as of the fiscal year-end. Second, the Statement of Activities, details whether net position has improved or deteriorated since the prior year-end.

The government-wide financial statements report three types of activities:

Governmental Activities – The activities reported here are primarily supported by taxes and federal grants. Most of the State’s activities fall into this category and include administration and regulatory oversight; agriculture and forestry; budget stabilization; capital projects; conservation and environment; corrections; culture, recreation, and tourism; debt service; economic development; education; endowments; health and welfare; military and veterans affairs; other purposes; public safety; transportation and development; unemployment compensation; workforce support and training; and youth programs.

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Business-type Activities – These activities normally are intended to recover all or a significant portion of their costs through user fees and charges to external users of goods and services. The business-type activities operated by the State include the Unemployment Trust Fund, the Louisiana Community and Technical College System (LCTCS), the Louisiana Agricultural Finance Authority (LAFA), the Clean Water State Revolving Fund, and others.

Component Units – Component units are legally separate organizations for which the elected officials of the government are financially accountable or have significant influence in governing board appointments. Among the component units are public colleges and universities, the Louisiana Lottery Corporation, and others. For a list of the component units included in the government-wide statements, see Note 1 (page 43) of the notes to the basic financial statements.

Reporting the State’s Most Significant Funds

Fund Financial Statements

The fund financial statements begin on page 29 and provide more detailed information than the government-wide statements by providing information about the most significant funds of the State – not the State as a whole. The three categories into which the funds of the State can be classified are governmental funds, proprietary funds, and fiduciary funds.

Governmental funds account for most of the functions reported as governmental activities in the government-wide financial statements. Governmental fund financial statements focus on short-term inflows and outflows of current financial resources and the balances of these resources available at fiscal year-end. Governmental funds are reported using the modified accrual basis of accounting and the current resources measurement focus, which assists in determining whether there are more or fewer financial resources that can be spent in the near future to finance the State’s governmental programs.

Proprietary funds encompass enterprise funds and internal service funds. When the State charges customers for the services it provides, whether to outside customers (enterprise funds) or to other state agencies (internal service funds), the services are generally reported in the proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. Proprietary funds apply the accrual basis of accounting utilized by private sector businesses. Internal service funds are used to accumulate and allocate costs internally among the various functions of the State. Because the internal service funds mainly benefit governmental rather than business-type functions, they are included in the governmental activities in the government-wide financial statements.

Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support State programs. The State is responsible for ensuring that the assets reported in these funds are used for their intended purposes. The fiduciary fund category includes pension trust funds, investment trust funds, private-purpose trust funds, and agency funds.

Notes to the Financial Statements

The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 43 – 118 of this report.

Required Supplementary Information (RSI)

In addition to the basic financial statements and accompanying notes, this CAFR also presents budgetary comparison schedules for the General Fund, additional information concerning pensions, and funding status on its obligation to provide OPEB benefits to its employees. Required supplementary information can be found on page 119 of this report.

Other Information

The CAFR also includes other information that is not part of the basic financial statements or required by the GASB. This information is included for additional analysis and is comprised of the Fund Combining Statements (pages 136 – 171), the budgetary comparison schedule for the Bond Security and Redemption Fund (page 133), and the Statistical Section.

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THE STATE AS A WHOLE

Government-wide Financial Analysis

The State’s overall financial position and results of operations for the past two years for the primary government are summarized as follows:

Condensed Statement of Net Position

(in thousands) Governmental Activities Business-type Activities Primary Government 2018 2017 2018 2017 2018 2017 Current and other assets $ 12,108,283 $ 12,026,281 $ 2,470,051 $ 2,421,931 $ 14,578,334 $ 14,448,212Capital Assets 15,338,215 15,361,760 1,028,510 1,006,953 16,366,725 16,368,713

Total Assets 27,446,498 27,388,041 3,498,561 3,428,884 30,945,059 30,816,925Total Deferred Outflows of Resources 1,588,404 2,094,340 95,987 112,978 1,684,391 2,207,318Other Liabilities 4,254,453 5,092,598 85,633 75,839 4,340,086 5,168,437Long-term debt outstanding 23,857,945 19,751,282 1,446,953 1,366,517 25,304,898 21,117,799

Total Liabilities 28,112,398 24,843,880 1,532,586 1,442,356 29,644,984 26,286,236Total Deferred Inflows of Resources 688,644 375,101 55,485 19,642 744,129 394,743Net Investment in Capital Assets 11,730,196 11,641,540 446,322 446,609 12,176,518 12,088,149Restricted 4,556,099 4,571,712 1,220,926 1,127,101 5,777,025 5,698,813Unrestricted (16,052,435) (11,949,852) 339,229 506,154 (15,713,206) (11,443,698)Total Net Position $ 233,860 $ 4,263,400 $ 2,006,477 $ 2,079,864 $ 2,240,337 $ 6,343,264

As noted earlier, net position over time may serve as a useful indicator of a government’s financial health. In the case of Louisiana, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $2.2 billion, at the close of the fiscal year. The largest portion of Louisiana’s net position, $12.2 billion, reflects its investment in capital assets (e.g., land, roads, buildings, machinery, and equipment), less any related outstanding debt that was issued to acquire those assets. The State uses these assets to provide services to residents of the State, and consequently are not available for future spending. Although the State’s investment in capital assets is reported net of related debt, this debt must be paid from other sources since the capital assets themselves cannot be used to liquidate these liabilities. An additional $5.8 billion of Louisiana’s net position is subject to external restrictions. These restricted amounts are only available for spending as provided for by law and/or contract and grant agreements.

The remaining portion of net position is considered to be unrestricted. Any positive amounts reported for unrestricted net position could be used to meet Louisiana’s ongoing obligations to its citizens and creditors. This year, however, Louisiana’s net investment in capital assets and restricted assets and deferred outflows of resources less its restricted liabilities and deferred inflows of resources exceeded the State’s total net position resulting in the State reporting unrestricted net position of negative $15.7 billion. The State’s negative unrestricted net position is mainly caused by the following:

A net pension liability and pension-related deferred inflows and outflows for the State’s participation in various defined benefit plans of approximately $5.6 billion.

The effect of continued issuance of long-term debt to fund annual expenses for capital grants to other entities of approximately $3.4 billion.

An estimated liability recorded for $1.5 billion as a restatement to recognize the State’s share of the costs in two partnerships with the Federal Government to construct and improve levee systems in the greater New Orleans area.

A liability for post-employment benefits other than pensions of $6.4 billion attributable to continuous under-fundings of annual required contributions and due to the implementation of GASB Statement 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions (OPEB), which requires that governments

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recognize the unfunded actuarial accrued liability for OPEB Plans in the financial statements. As a result of the implementation of this standard, a restatement was made to the financial statements increasing the total OPEB liability by $3.2 billion dollars for governmental activities.

Unfunded reserves for incurred claims payable to outside parties for worker’s compensation, disallowed costs, and various lawsuits of approximately $2.1 billion.

Condensed Statement of Activities

(in thousands) Governmental Activities Business-type Activities Total Primary Government 2018 2017 2018 2017 2018 2017 Revenues Program Revenues:

Charges for Services $ 2,388,464 $ 2,449,907 $ 500,849 $ 487,506 $ 2,889,313 $ 2,937,413Operating Grants & Contributions 13,859,304 14,464,231 190,902 168,135 14,050,206 14,632,366Capital Grants & Contributions 587,843 607,380 47,847 56,539 635,690 663,919

General Revenues: Income Taxes 3,787,659 3,187,322 -- -- 3,787,659 3,187,322Sales & Use Taxes 4,342,563 4,335,828 -- -- 4,342,563 4,335,828Other Taxes 2,587,215 2,518,424 -- -- 2,587,215 2,518,424Other 1,362,308 1,460,521 (663) 595 1,361,645 1,461,116

Total Revenues 28,915,356 29,023,613 738,935 712,775 29,654,291 29,736,388 Expenses Governmental Activities:

General Government 2,887,652 2,527,768 -- -- 2,887,652 2,527,768Culture, Recreation & Tourism 97,685 103,386 -- -- 97,685 103,386Transportation & Development 1,377,898 1,560,415 -- -- 1,377,898 1,560,415Public Safety 949,390 1,872,279 -- -- 949,390 1,872,279Health & Welfare 13,975,446 14,044,785 -- -- 13,975,446 14,044,785Corrections 702,948 713,713 -- -- 702,948 713,713Youth Development 75,263 91,636 -- -- 75,263 91,636Conservation & Environment 554,590 550,652 -- -- 554,590 550,652Education 6,308,850 6,147,844 -- -- 6,308,850 6,147,844Agriculture & Forestry 93,118 89,613 -- -- 93,118 89,613Economic Development 231,981 259,836 -- -- 231,981 259,836Military & Veterans Affairs 170,224 183,731 -- -- 170,224 183,731Workforce Support & Training 247,754 251,137 -- -- 247,754 251,137Interest on Long-term Debt 294,885 289,139 -- -- 294,885 289,139

Business-Type Activities: Higher Education -- -- 478,936 488,498 478,936 488,498Lending & Financing Activities -- -- 38,243 24,749 38,243 24,749Property Assistance -- -- 8,427 9,892 8,427 9,892Prison Enterprises -- -- 28,911 29,230 28,911 29,230Regulation & Oversight -- -- 47,182 48,926 47,182 48,926Unemployment Insurance -- -- 187,023 242,249 187,023 242,249

Total Expenses 27,967,684 28,685,934 788,722 843,544 28,756,406 29,529,478 Net Increase (Decrease) before Transfers 947,672 337,679 (49,787) (130,769) 897,885 206,910

Transfers In (Out) (131,586) (124,701) 131,586 124,701 -- --Net Increase (Decrease) 816,086 212,978 81,799 (6,068) 897,885 206,910Net Position - Beginning, as Restated (582,226) 4,050,422 1,924,678 2,085,932 1,342,452 6,136,354Net Position - Ending $ 233,860 $ 4,263,400 $ 2,006,477 $ 2,079,864 $ 2,240,337 $ 6,343,264

Louisiana’s overall net position increased by $897.9 million from the prior fiscal year. The following contributed to the changes in the state’s net position:

Expenses for Public Safety decreased by $923 million, which was mainly caused by a decrease in disaster relief. Last fiscal year, the State had a large amount of expenses in Public Safety due to the recovery from the major

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floods, which occurred in March 2016 and August 2016. The two floods affected different areas of the state and submerged thousands of houses and businesses. The majority of expenditures that were paid for the emergency work that needed to be done for the August 2016 flood occurred in FY 2017. This year, the rush funds for the emergency work was slowly coming to an end and more steady payments for the permanent work was beginning. Since most of the federal dollars received for the disaster relief are expenditure driven, the revenue for disaster relief also declined, but not as drastic as the expenses. In addition, the revenues and expenses for hurricane recovery for both Katrina and Gustav are declining as these hurricanes occurred years ago.

Individual income tax collections increased by $296 million from the prior year. In addition, tax refunds that the state owes declined by $161 million. This is mainly due to the federal tax law changes that were signed into law on December 22, 2017, which overhauled the U.S. tax code. The changes contained a number of payroll provisions that required modification of federal tax withholdings and reduced federal taxes owed for many taxpayers. As a result, Louisiana changed its tax withholding tables, which increased the amount of state taxes withheld. Louisiana allows a deduction for federal taxes paid on its State’s individual income tax return and this deduction will be smaller for those taxpayers with a reduced federal tax liability, resulting in more tax revenue for the State.

THE STATE’S FUNDS

As discussed earlier, funds provide additional detail on the amounts presented in the government-wide financial statements. Governmental fund information provides additional detail on the State’s governmental activities while enterprise fund information provides additional detail on the State’s business-type activities. An analysis of balances and individual transactions of the State’s governmental and enterprise funds is provided below:

Governmental Funds

Even though governmental funds and the governmental activities report the same operations, changes in fund balance in the governmental fund financial statements may differ significantly from changes in net position in the government-wide financial statements. This is because governmental funds use the current resources measurement focus and modified accrual basis of accounting while governmental activities use the economic resources measurement focus and the accrual basis of accounting. Examples of items reported in governmental activities but not in governmental funds include capital assets and long-term liabilities not expected to be liquidated with current financial resources such as bonds, the net pension liability, and the total obligation for other post-employment benefits (OPEB). Despite these differences in perspective and basis of accounting, the information presented in the governmental funds financial statements largely reinforced the financial results reported in the government-wide financial statements this year.

The fund balance of the General Fund increased by $796 million. A large part of this fund balance increase is attributable to increased tax collections, previously mentioned. Corporate collections (income and franchise) increased by $89.2 million, severance tax increased by $83.5 million, general sales tax collections increased by $67.8 million, and royalty collections increased by $17.1 million. Corporate collections were up due to a good corporate earnings environment and the effect of cuts to tax credits, deductions and rebates, passed by the Louisiana legislators about three years ago. Mineral revenue (severance tax and royalty collections) were up mainly because of an increase in the oil price during the 2018 fiscal year.

There were no significant changes in the fund balances of the other major governmental funds. The fund balance for the Louisiana Education Quality Trust Fund increased by $26 million, due to the increase in the fair value of its investments and the fund balance for the Capital Outlay Escrow Fund decreased by $7.5 million. The fund balance for the nonmajor governmental funds increased by $14.6 million driven largely by activity in the Transportation Trust Fund (TTF), which increased its fund balance by $12.4 million.

Enterprise Funds

Enterprise funds provide additional detail for the amounts presented as business-type activities in the government-wide financial statements. They use the same measurement focus and basis of accounting as business-type activities. Some of the larger factors that resulted in the change in net position of enterprise funds are as follows:

The Louisiana Community and Technical Colleges System (LCTCS) experienced an increase in net position of $33.9 million due mainly to an increase of $30.6 million in capital assets as a result of capital improvements and enhancements to certain LCTCS facilities authorized by Act 360 of the 2013 Regular Session.

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Net position for the Unemployment Insurance Trust Fund increased by $65.1 million due mainly to a decrease in unemployment claims

Net position for aggregate remaining nonmajor enterprise funds decreased by $17.2 million. Although, some of the nonmajor funds had increases in net position, these increases were offset by a $43 million decrease in the net position of the Louisiana Gulf Opportunity Loan (GO Zone) Fund. The GO Zone Fund was set up to collect on loans that were granted to local governments from the State in the aftermath of Hurricanes Katrina and Rita to assist in their recovery. As the loans are collected from the local governments, the receivables in the fund are reduced and funds are transferred to the Bond Security and Redemption Fund to pay the debt service of the bonds issued for these loans.

GENERAL FUND BUDGETARY HIGHLIGHTS

Most of the State’s operating expenditures are reported in the General Fund. These expenditures are funded by a variety of sources including various state taxes, agency self-generated revenues, licenses and fees, federal revenues, transfers of interagency receipts, and other statutorily dedicated funds. Budgeted expenditures are constrained by annual revenue projections forecasted by the Revenue Estimating Conference (REC). Actual expenditures of all other revenues are limited to the lesser of budget or actual collections. Over the course of the year, agencies may request budget adjustments based on actual need.

The fiscal year ended with a surplus of $308 million, which is the excess of revenues over the expenditures of state government. The excess revenues consisted primarily of revenues for corporate income taxes, franchise taxes, personal income taxes, severance taxes and royalties that were higher than had originally been forecasted for the year. Several factors contributed to the higher collections, including state cuts to tax credits and deductions, a better economy with strong corporate earnings, higher employment within the state, higher oil prices, and the federal tax reform that was passed at the end of calendar year 2017.

The General Fund final budget revenues were $743 million higher than appropriated in the original budget and the final budget expenditures for the General Fund was $1.1 billion greater than the budgeted expenditures originally appropriated by the Legislature. A major reason for these increases in budgeted revenues and expenditures was due to adjustments made for increases in Medicaid payments to private providers for the managed care of Medicaid patients. In addition, there were increases in the Executive Department for federal budgeted revenues and expenditures related to the restoration programs due to the 2016 floods.

Actual budgetary basis General Fund expenditures were $2.5 billion lower than final budgeted amounts. This variance is due in part to forecasts for budgeted expenditures of federal receipts which are largely based on remaining grant balances. Since the entire remaining allocations of grants are rarely spent within one year, budgeted amounts are inflated relative to actuals. For example, the budget was increased by $634 million in preparation of the federal grants awards resulting from the 2016 floods. Since this was a new award, the grant spending did not actually pick up until the latter half of the year; therefore, the expenditures were not as high in FY 2018 as previously anticipated. Another reason that actual budgeted revenues and expenditures are lower than final budgeted revenue and expenditures include less than projected Medicaid claims.

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital Assets

At the end of the fiscal year, the State had $16.4 billion invested in a broad range of capital assets. This amount represents a net decrease of $2.0 million from the prior year.

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Capital Assets(net of depreciation and amortization in thousands)

Governmental Activities Business-type Activities Total Primary Government 2018 2017 2018 2017 2018 2017 Land $ 2,281,616 $ 2,265,842 $ 61,373 $ 60,201 $ 2,342,989 $ 2,326,043Building & Improvements (Net) 1,550,015 1,577,580 579,264 455,825 2,129,279 2,033,405Machinery & Equipment (Net) 131,294 109,385 38,568 37,377 169,862 146,762Infrastructure (Net) 9,934,447 9,894,776 300,961 310,066 10,235,408 10,204,842Intangible Assets (Net) 20,072 31,953 8,030 9,714 28,102 41,667Construction in Progress 1,420,771 1,482,224 40,314 133,770 1,461,085 1,615,994Total $ 15,338,215 $ 15,361,760 $ 1,028,510 $ 1,006,953 $ 16,366,725 $ 16,368,713

The State’s annual capital outlay budget includes appropriations to fund both 1) capital assets and expenditures of the primary government and 2) capital grants to other entities outside of the primary government including colleges, universities and local governments which are not included in the amounts presented above. Project expenditures may be funded through a variety of means including transfers from the General Fund and other funds, federal grants, and deposits from component units and local governments. However, most expenditures are funded with proceeds from the issuance of general obligation bonds. Capital projects appropriated in the annual capital outlay budgets are subject to a process by which projects are ranked for funding priority. In anticipation of future general obligation bond issues, the authority to incur expenditures for the highest priority projects may be granted through “cash lines of credit.” This mechanism facilitates the start of projects that will be funded largely from general obligation bonds without available general obligation bonds and provides an indication of outstanding capital commitments.

Infrastructure for governmental activities increased by approximately $40 million. DOTD manages dozens of state and federal programs to ensure the safety and efficiency of Louisiana’s transportation systems. The various programs include the I-49 North Project, which began in 2014. The I-49 North Project is a 36-mile project that constructs a four-lane interstate with a four foot inside shoulder and a ten foot outside shoulder from I-220 in Shreveport, Louisiana to the Arkansas state line. The cost of the I-49 Project North is approximately $650 million. The project consist of 11 segments, A-K. Segments A-I are open to traffic with segments J-K opening to traffic in FY 2019.

Buildings for BTA’s increased by $123 million while construction-in-progress declined by $93 million. This is mostly due to construction completed for a series of buildings at LCTCS. One of the larger buildings completed includes a new 80,000 square foot STEM (science, technology, engineering and mathematics) education facility at Bossier Parish Community College (BPCC). The four-story building houses BPCC’s Nursing and Allied Health programs and provides additional classrooms, lab spaces and study areas for students. Another building completed is the Allied Health and Science Training Program Building at South Louisiana Community College. The 63,000 square foot building costs $17.9 million to construct and accommodates programs in nursing and allied health, as well as, providing space for STEM classes.

Refer to Note 5 – “Capital Assets” on page 76 for more details of the changes in capital assets.

Debt Administration

The State’s bonded debt decreased by $124.7 million, or -1.5%, from the prior year. Presented below is a table comparing outstanding bonds for the current and prior year.

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Outstanding DebtGeneral Obligation and Revenue Bonds

(in thousands) Governmental Activities Business-type Activities Total Primary Government 2018 2017 2018 2017 2018 2017 General obligation bonds $ 3,606,280 $ 3,565,590 $ -- $ -- $ 3,606,280 $ 3,565,590Revenue bonds and notes 3,559,269 3,726,351 548,975 580,540 4,108,244 4,306,891Unamortized discounts & premiums 660,832 647,035 44,095 24,608 704,927 671,643Total $ 7,826,381 $ 7,938,976 $ 593,070 $ 605,148 $ 8,419,451 $ 8,544,124

The State’s bonded debt for its governmental activities was driven largely by the issuance of $300 million in general obligation bonds and payments of $259 million. In addition, the state issued various refunding bonds for Gasoline and Fuels Tax in the amount of $582.5 million and $14 million for Department of Public Safety through Louisiana Public Finance Authority.

The State’s credit rating of AA- remained the same by Standard & Poor’s Ratings Services during fiscal year 2018 with a negative outlook. Moody’s rating remained at Aa3 with a negative outlook and Fitch Ratings remained at AA- with a stable outlook. Additional details on long-term debt, including a discussion of debt authorization and limitations are included in Note 8, Long-term Obligations (page 92).

A LOOK FORWARD

(Excerpts are from The Louisiana Economic Outlook 2019 and 2020 by Loren Scott and Judy Collins)

The State emerged from a 28-month recession in late 2017, but has since been showing signs of growth. Some of the known factors that will affect the State’s 2019 net positon include:

The US Congress passed federal tax reform at the end of the 2017 calendar year (the Tax Cut and Jobs Act). This tax reform lowered income tax liability for broad segments of the population. The State’s income tax payments are in inverse relationship as federal tax payments are deductible from state taxable income. This should have a favorable outcome on the State’s income tax collections.

The State sales tax rate decreased in FY 2019. The “fifth penny”, which was the temporary one-percentage point increase in the state sales tax rate passed by the Legislature in early 2016, expired June 30, 2018. However, the Legislature passed a 0.45% increase in the General and Vehicle Sales Tax rate and expanded the tax base, placing the state general sales tax rate at 4.45%.

More than $180 billion in industrial projects have been announced in Louisiana since 2012. The three areas benefitting the most from these industrial announcements are Lake Charles, Baton Rouge, and New Orleans metropolitan statistical areas (MSAs). In these three MSAs, $83.3 million of those projects are completed or under construction and approximately, $94.4 billion in projects are at the front-end engineering, design stage.

Requests for Information

This financial report is designed to provide a general overview of the State’s finances for interested parties. Questions concerning any of the information provided in this report or requests for additional financial information may be obtained by writing to the Office of Statewide Reporting and Accounting Policy, P.O. Box 94095, Baton Rouge, LA 70804-9095 or by telephoning (225) 342-0708. The component units of the State issue their own audited financial reports. Telephone numbers for these entities can also be obtained from the Office of Statewide Reporting and Accounting Policy. This report is available on our website at http://www.doa.louisiana.gov/osrap/cafr-2.htm.

http://www.doa.louisiana.gov/osrap/cafr-2.htm

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STATEMENT OF NET POSITION JUNE 30, 2018 (EXPRESSED IN THOUSANDS) PRIMARY GOVERNMENT

GOVERNMENTAL

ACTIVITIES BUSINESS-TYPE

ACTIVITIES TOTAL PRIMARY GOVERNMENT

COMPONENT UNITS

ASSETS

CASH & CASH EQUIVALENTS $ 2,383,098 $ 1,594,415 $ 3,977,513 $ 1,709,865INVESTMENTS 3,776,007 88,247 3,864,254 2,528,107DERIVATIVE INSTRUMENTS 21,123 -- 21,123 --RECEIVABLES (NET) 3,389,608 98,406 3,488,014 4,597,226AMOUNTS DUE FROM PRIMARY GOVERNMENT -- -- -- 44,663AMOUNTS DUE FROM COMPONENT UNITS 28,258 -- 28,258 --DUE FROM FEDERAL GOVERNMENT 2,186,365 15,773 2,202,138 81,603INVENTORIES 79,491 6,604 86,095 14,127PREPAYMENTS 245,650 729 246,379 30,455INTERNAL BALANCES (1,362) 1,362 -- --NOTES RECEIVABLES -- 658,765 658,765 430,300OTHER ASSETS 45 5,750 5,795 261,860CAPITAL ASSETS (NOTE 5)

LAND 2,281,616 61,373 2,342,989 294,321BUILDING & IMPROVEMENTS (NET) 1,550,015 579,264 2,129,279 3,965,300MACHINERY & EQUIPMENT (NET) 131,294 38,568 169,862 366,396INFRASTRUCTURE (NET) 9,934,447 300,961 10,235,408 1,134,886INTANGIBLE ASSETS (NET) 20,072 8,030 28,102 13,924CONSTRUCTION IN PROGRESS 1,420,771 40,314 1,461,085 7,096,769

TOTAL ASSETS 27,446,498 3,498,561 30,945,059 22,569,802 DEFERRED OUTFLOWS OF RESOURCES

DEFERRED AMOUNTS ON DEBT REFUNDING 266,817 -- 266,817 66,503OPEB-RELATED DEFERRED OUTFLOWS OF RESOURCES 212,521 10,891 223,412 88,028PENSION-RELATED DEFERRED OUTFLOWS OF RESOURCES 1,109,066 85,096 1,194,162 572,007

TOTAL DEFERRED OUTFLOWS OF RESOURCES 1,588,404 95,987 1,684,391 726,538 LIABILITIES

ACCOUNTS PAYABLE 1,861,148 44,758 1,905,906 263,972ACCRUED INTEREST 74,690 1,998 76,688 13,389AMOUNTS DUE TO PRIMARY GOVERNMENT -- -- -- 28,258AMOUNTS DUE TO COMPONENT UNITS 44,663 -- 44,663 --DUE TO FEDERAL GOVERNMENT 598,164 2,782 600,946 26,149DUE TO LOCAL GOVERNMENTS 950,008 -- 950,008 --UNEARNED REVENUES 301,924 18,784 320,708 3,784,958TAX REFUNDS PAYABLE 209,489 -- 209,489 --UNCLAIMED PROPERTY LIABILITY 180,132 -- 180,132 --AMOUNTS HELD IN CUSTODY FOR OTHERS 32,740 1,601 34,341 48,975OTHER LIABILITIES 1,495 15,710 17,205 50,554CURRENT PORTION OF LONG-TERM LIABILITIES (NOTE 8):

CONTRACTS PAYABLE 8,707 -- 8,707 6,118COMPENSATED ABSENCES PAYABLE 15,429 1,791 17,220 18,499CAPITAL LEASE OBLIGATIONS -- 90 90 5,837NOTES PAYABLE 4,595 -- 4,595 7,402BONDS PAYABLE 426,382 19,458 445,840 278,018POLLUTION REMEDIATION OBLIGATIONS 11,419 -- 11,419 --ESTIMATED LIABILITY FOR CLAIMS 297,672 -- 297,672 40,675OTHER LONG-TERM LIABILITIES 4,952 13 4,965 73,225

NONCURRENT PORTION OF LONG-TERM LIABILITIES (NOTE 8): COMPENSATED ABSENCES PAYABLE 179,546 19,592 199,138 143,352CAPITAL LEASE OBLIGATIONS -- 2,475 2,475 28,715NOTES PAYABLE 9,023 1,395 10,418 74,677BONDS PAYABLE 7,399,999 573,612 7,973,611 2,937,870TOTAL OPEB LIABILITY 6,083,238 346,807 6,430,045 3,190,672NET PENSION LIABILITY 5,926,561 481,720 6,408,281 3,295,890POLLUTION REMEDIATION OBLIGATIONS 13,524 -- 13,524 --ESTIMATED LIABILITY FOR CLAIMS 1,819,973 -- 1,819,973 2,671ESTIMATED LIABILITY FOR CONSTRUCTION CONTRACTS 1,529,122 -- 1,529,122 --OTHER LONG-TERM LIABILITIES 127,803 -- 127,803 87,938

TOTAL LIABILITIES 28,112,398 1,532,586 29,644,984 14,407,814

The notes to the financial statement are an integral part of this statement.

State of Louisiana

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PRIMARY GOVERNMENT

GOVERNMENTAL

ACTIVITIES BUSINESS-TYPE

ACTIVITIES TOTAL PRIMARY GOVERNMENT

COMPONENT UNITS

DEFERRED INFLOWS OF RESOURCES

ACCRUED INCREASE IN FAIR VALUE OF HEDGING DERIVATIVES 21,123 -- 21,123 --DEFERRED AMOUNTS ON DEBT REFUNDING -- 6,321 6,321 286GRANTS RECEIVED PRIOR TO MEETING TIME REQUIREMENTS -- -- -- 4,010OPEB-RELATED DEFERRED INFLOWS OF RESOURCES 342,068 19,738 361,806 171,729PENSION-RELATED DEFERRED INFLOWS OF RESOURCES 325,453 29,426 354,879 287,213

TOTAL DEFERRED INFLOWS OF RESOURCES 688,644 55,485 744,129 463,238 NET POSITION

NET INVESTMENT IN CAPITAL ASSETS 11,730,196 446,322 12,176,518 11,183,077RESTRICTED FOR:

EXPENDABLE: ADMINISTRATION & REGULATORY OVERSIGHT 63,919 -- 63,919 --AGRICULTURE & FORESTRY PROGRAMS 605 -- 605 --BUDGET STABILIZATION 321,070 -- 321,070 --CAPITAL PROJECTS 387,186 -- 387,186 28,350CONSERVATION & ENVIRONMENT PROGRAMS:

ARTIFICIAL REEF DEVELOPMENT 18,607 -- 18,607 --COASTAL PROTECTION & RESTORATION 168,092 -- 168,092 --OILFIELD SITE RESTORATION 24,358 -- 24,358 --WILDLIFE & FISHERIES CONSERVATION 145,032 -- 145,032 --OTHER CONSERVATION & ENVIRONMENT PROGRAMS 5,670 -- 5,670 --

CORRECTIONS PROGRAMS 70 -- 70 --CULTURE, RECREATION, & TOURISM PROGRAMS 4,676 -- 4,676 --DEBT SERVICE 238,056 -- 238,056 239,262ECONOMIC DEVELOPMENT PROGRAMS 2,666 -- 2,666 --EDUCATION PROGRAMS:

MINIMUM FOUNDATION PROGAM 87,359 -- 87,359 --OTHER EDUCATION PROGRAMS 290,887 -- 290,887 --

ENDOWMENTS - EXPENDABLE -- 2,203 2,203 1,130,929HEALTH & WELFARE PROGRAMS:

STATE MEDICAID MATCH 15,092 -- 15,092 --OTHER HEALTH & WELFARE PROGRAMS 59,583 -- 59,583 --

MILITARY & VETERANS AFFAIRS PROGRAMS 21,339 -- 21,339 --OTHER PURPOSES -- 164,291 164,291 369,838TRANSPORTATION & DEVELOPMENT PROGRAMS 2,006 -- 2,006 --UNEMPLOYMENT COMPENSATION 47 1,047,141 1,047,188 --WORKFORCE SUPPORT & TRAINING PROGRAMS 4,724 -- 4,724 --YOUTH PROGRAMS 4,469 -- 4,469 --

NONEXPENDABLE: CULTURE, RECREATION, & TOURISM PROGRAMS 100 -- 100 --EDUCATION PROGRAMS 2,224,187 -- 2,224,187 --ENDOWMENTS -- 7,291 7,291 894,072HEALTH & WELFARE PROGRAMS 466,299 -- 466,299 --

UNRESTRICTED (16,052,435) 339,229 (15,713,206) (5,420,240) TOTAL NET POSITION $ 233,860 $ 2,006,477 $ 2,240,337 $ 8,425,288

State of Louisiana

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STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2018 (EXPRESSED IN THOUSANDS) NET (EXPENSE) REVENUE AND CHANGES IN NET POSITION PROGRAM REVENUES PRIMARY GOVERNMENT

FUNCTIONS/PROGRAMS EXPENSES

CHARGES FOR

SERVICES

OPERATING GRANTS &

CONTRIBUTIONS

CAPITAL GRANTS &

CONTRIBUTIONS GOVERNMENTAL

ACTIVITIES

BUSINESS-TYPE

ACTIVITIES TOTAL COMPONENT

UNITS PRIMARY GOVERNMENT:

GOVERNMENTAL ACTIVITIES: GENERAL GOVERNMENT $ 2,887,652 $ 1,216,509 $ 655,008 $ 215 $ (1,015,920) $ (1,015,920) CULTURE, RECREATION & TOURISM 97,685 16,612 13,752 -- (67,321) (67,321) TRANSPORTATION & DEVELOPMENT 1,377,898 174,505 151,986 587,628 (463,779) (463,779) PUBLIC SAFETY 949,390 344,842 510,169 -- (94,379) (94,379) HEALTH & WELFARE 13,975,446 288,857 10,751,086 -- (2,935,503) (2,935,503) CORRECTIONS 702,948 41,150 32,121 -- (629,677) (629,677) YOUTH DEVELOPMENT 75,263 1,008 712 -- (73,543) (73,543) CONSERVATION & ENVIRONMENT 554,590 169,362 213,507 -- (171,721) (171,721) EDUCATION 6,308,850 17,218 1,247,607 -- (5,044,025) (5,044,025) AGRICULTURE & FORESTRY 93,118 21,652 52,737 -- (18,729) (18,729) ECONOMIC DEVELOPMENT 231,981 4,259 14,043 -- (213,679) (213,679) MILITARY & VETERANS AFFAIRS 170,224 15,806 97,420 -- (56,998) (56,998) WORKFORCE SUPPORT & TRAINING 247,754 76,684 119,156 -- (51,914) (51,914) INTEREST ON LONG-TERM DEBT 294,885 -- -- -- (294,885) (294,885)

TOTAL GOVERNMENTAL ACTIVITIES 27,967,684 2,388,464 13,859,304 587,843 (11,132,073) (11,132,073)

BUSINESS-TYPE ACTIVITIES: HIGHER EDUCATION 478,936 140,290 179,143 22,895 $ (136,608) (136,608) LENDING & FINANCING ACTIVITIES 38,243 24,358 10,916 24,952 21,983 21,983 PROPERTY ASSISTANCE 8,427 8,618 -- -- 191 191 PRISON ENTERPRISES 28,911 27,900 -- -- (1,011) (1,011) REGULATION & OVERSIGHT 47,182 48,398 14 -- 1,230 1,230 UNEMPLOYMENT INSURANCE 187,023 251,285 829 -- 65,091 65,091

TOTAL BUSINESS-TYPE ACTIVITIES 788,722 500,849 190,902 47,847 (49,124) (49,124)

TOTAL PRIMARY GOVERNMENT $ 28,756,406 $ 2,889,313 $ 14,050,206 $ 635,690 (11,132,073) (49,124) (11,181,197) TOTAL DISCRETELY PRESENTED COMPONENT UNITS $ 5,719,874 $ 2,768,831 $ 1,176,875 $ 199,361 $ (1,574,807) GENERAL REVENUES: CORPORATE INCOME TAXES 348,577 348,577 INDIVIDUAL INCOME TAXES 3,439,082 3,439,082 SALES & USE TAXES 4,342,563 4,342,563 SEVERANCE TAXES 460,998 460,998 TOBACCO TAXES 296,860 296,860 FRANCHISE TAXES 119,403 119,403 GAS & FUELS TAXES, restricted for transportation 605,962 605,962 INSURANCE PREMIUM TAXES 893,076 893,076 ALCOHOL TAXES 76,064 76,064 OCCUPANCY TAXES 66,329 66,329 OTHER TAXES 68,523 68,523 UNCLAIMED PROPERTY 49,979 49,979 GAMING 887,941 887,941 USE OF MONEY & PROPERTY 424,388 (663) 423,725 UNRESTRICTED PAYMENTS FROM PRIMARY GOVERNMENT -- -- -- 1,287,704 OTHER GENERAL REVENUES -- -- -- 1,666,069 ADDITIONS TO PERMANENT ENDOWMENTS -- -- -- 23,082 TRANSFERS (131,586) 131,586 -- --

TOTAL GENERAL REVENUES, ADDITIONS TO PERMANENT ENDOWMENTS, AND TRANSFERS 11,948,159 130,923 12,079,082 2,976,855

CHANGE IN NET POSITION 816,086 81,799 897,885 1,402,048 NET POSITION - BEGINNING AS RESTATED (582,226) 1,924,678 1,342,452 7,023,240 NET POSITION - ENDING $ 233,860 $ 2,006,477 $ 2,240,337 $ 8,425,288 The notes to the financial statements are an integral part of this statement.

G O V E R N M E N T A L F U N D F I N A N C I A L S T A T E M E N T S


GOVERNMENTAL FUND FINANCIAL STATEMENTS

Major Funds

GENERAL FUND

The General Fund, the principal operating fund of the State, was established administratively to provide for the distribution of funds appropriated by the State Legislature for the ordinary expenses of state government. Transactions related to resources that are not accounted for in other funds are accounted for in the General Fund. Revenues are provided from the direct deposit of federal grants and the transfer of state revenues from the Bond Security and Redemption Fund after debt service requirements have been met.

BOND SECURITY AND REDEMPTION FUND

This fund is used to provide for the collection of all money deposited into the State Treasury except federal funds, donations or other forms of assistance when the terms and conditions of the related agreements require otherwise.

Each fiscal year, an amount is allocated from this fund sufficient to pay all obligations secured by the full faith and credit of the state, due and payable, within the current fiscal year, including principal, interest, premiums, and sinking or reserve funds. Except as other wise provided by law, money remaining in the fund is credited to the General Fund.

LOUISIANA EDUCATION QUALITY TRUST FUND

Once requirements of the Bond Security and Redemption Fund have been met, certain funds received from the federal government attributable to mineral production or leases on the outer continental shelf are deposited by the Treasurer in this fund. The funds are held in a trustee capacity and interest earned is used for various educational purposes.

CAPITAL OUTLAY ESCROW FUND

The Capital Outlay Escrow Fund was created to provide for the capital outlay expenditures of the State as appropriated in the annual capital outlay appropriations act. The fund accounts for a large volume of ongoing and new construction, routine maintenance and repairs, as well as repairs and renovations related to the damage caused by hurricanes. The fund is financed by bond issues, federal funds, self-generated revenues, statutory dedications, and appropriations by the Louisiana Legislature.


State of Louisiana

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BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2018 (EXPRESSED IN THOUSANDS)

GENERAL

FUND

BOND SECURITY &

REDEMPTION FUND

CAPITAL OUTLAY ESCROW

FUND

LOUISIANA EDUCATION

QUALITY TRUST FUND

NONMAJOR GOVERNMENTAL

FUNDS

TOTAL GOVERNMENTAL

FUNDS ASSETS:

CASH & CASH EQUIVALENTS $ 1,825,452 $ 208,692 $ 312,461 $ -- $ 30,857 $ 2,377,462INVESTMENTS 251,399 -- 12,564 1,433,274 2,037,049 3,734,286RECEIVABLES (NET) 449,469 1,796,553 1,816 3 13,856 2,261,697DUE FROM OTHER FUNDS 1,298,692 161,701 201,258 576 103,111 1,765,338AMOUNTS DUE FROM COMPONENT UNITS 13,685 14,530 -- -- 43 28,258DUE FROM FEDERAL GOVERNMENT 2,016,204 -- 8,218 -- 81,518 2,105,940INVENTORIES 74,933 -- -- -- -- 74,933PREPAYMENTS 241,785 -- -- -- -- 241,785OTHER ASSETS 17 -- -- -- -- 17

TOTAL ASSETS $ 6,171,636 $ 2,181,476 $ 536,317 $ 1,433,853 $ 2,266,434 $ 12,589,716

LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES LIABILITIES:

ACCOUNTS PAYABLE $ 1,519,690 $ 117 $ 212,600 $ 1,044 $ 6,323 $ 1,739,774TAX REFUNDS PAYABLE -- 209,489 -- -- -- 209,489UNCLAIMED PROPERTY LIABILITY 180,132 -- -- -- -- 180,132DUE TO OTHER FUNDS 280,487 1,182,770 133,999 4,121 134,161 1,735,538AMOUNTS DUE TO COMPONENT UNITS 41,582 -- -- 3,081 -- 44,663DUE TO FEDERAL GOVERNMENT 582,843 -- -- -- -- 582,843DUE TO LOCAL GOVERNMENTS 939,625 7 2,860 -- 7,516 950,008AMOUNTS HELD IN CUSTODY FOR OTHERS -- -- 32,677 -- 63 32,740UNEARNED REVENUES 270,658 23,540 -- -- -- 294,198ESTIMATED LIABILITY FOR CLAIMS 66,471 -- -- -- -- 66,471OTHER LIABILITIES 1 -- -- -- -- 1

TOTAL LIABILITIES 3,881,489 1,415,923 382,136 8,246 148,063 5,835,857

DEFERRED INFLOWS OF RESOURCES:

UNAVAILABLE REVENUE -- 765,553 -- -- 70 765,623TOTAL DEFERRED INFLOWS OF RESOURCES -- 765,553 -- -- 70 765,623

FUND BALANCES:

NONSPENDABLE 103,596 -- -- 1,294,957 1,395,629 2,794,182RESTRICTED 949,804 -- 4,145 130,650 679,563 1,764,162COMMITTED 1,152,626 -- 150,036 -- 48,037 1,350,699ASSIGNED 84,121 -- -- -- -- 84,121UNASSIGNED -- -- -- -- (4,928) (4,928)

TOTAL FUND BALANCES 2,290,147 -- 154,181 1,425,607 2,118,301 5,988,236

TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $ 6,171,636 $ 2,181,476 $ 536,317 $ 1,433,853 $ 2,266,434 $ 12,589,716

The notes to the financial statements are an integral part of this statement.

State of Louisiana

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Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position (Expressed in Thousands) Total Fund Balances - Governmental Funds $ 5,988,236 Amounts reported for governmental activities in the Statement of Net Position are different due to the following:

Capital assets used in governmental activities are not current financial resources and are not reported in the fund financial statements. These assets consist of the following:

Land $ 2,281,315 Buildings and Improvements 2,619,541 Machinery and Equipment 842,691 Infrastructure 27,448,824 Intangible Assets 106,697 Construction in Progress 1,420,771 Accumulated Depreciation and Amortization (19,394,149) 15,325,690

Net position of the internal service funds is reported separately in the proprietary funds, but is included in governmental activities in the government-wide statements. (293,026)

The difference between the net carrying amount of refunded debt and the cost of refunding are deferred and amortized in the statement of net position, however these amounts are not reported at the fund level. 266,817

Some liabilities are not due and payable from current financial resources and are, therefore not reported in the funds. These liabilities consist of the following:

Compensated Absences (188,307) Notes Payable (311) Bonds Payable (7,826,381) Total OPEB Liability (6,071,078) Net Pension Liability (4,971,061) Pollution Remediation Obligations (24,943) Estimated Liabilities for Claims (2,051,175) Estimated Liability for Construction Contracts (1,529,122) Accrued Interest Payable (74,691) Accounts Payable (97,785) Due to Federal Government (15,322) Other Liabilities (132,697) (22,982,873)

Some of the State's revenues are not available to pay for the current period's expenditures and are not reported in the funds. 1,929,016

Net Position of Governmental Activities $ 233,860 The notes to the financial statements are an integral part of this statement.

State of Louisiana

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STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2018 (EXPRESSED IN THOUSANDS)

GENERAL

FUND

BOND SECURITY &

REDEMPTION FUND

CAPITAL OUTLAY ESCROW

FUND

LOUISIANA EDUCATION

QUALITY TRUST FUND

NONMAJOR GOVERNMENTAL

FUNDS

TOTAL GOVERNMENTAL

FUNDS REVENUES:

INTERGOVERNMENTAL REVENUES $ 12,923,707 $ 449,024 $ 60,144 $ -- $ 705,225 $ 14,138,100TAXES 4,350 10,523,611 -- -- 170,938 10,698,899TOBACCO SETTLEMENT -- 62,028 -- -- 93,043 155,071GAMING -- 887,941 -- -- -- 887,941USE OF MONEY & PROPERTY 10,620 429,507 146 -- 2,166 442,439LICENSES, PERMITS & FEES 25,276 1,230,548 6,585 -- 86,325 1,348,734SALES OF COMMODITIES & SERVICES 8,351 859,970 5,034 -- -- 873,355UNCLAIMED PROPERTY 43,086 6,893 -- -- -- 49,979OTHER SETTLEMENTS 290 -- -- -- -- 290GIFTS, DONATIONS, AND CONTRIBUTIONS 67,356 76,707 2,920 -- -- 146,983OTHER 55,220 47,275 5,164 314 42 108,015

TOTAL REVENUES 13,138,256 14,573,504 79,993 314 1,057,739 28,849,806

EXPENDITURES:

CURRENT: GENERAL GOVERNMENT 2,328,811 195 -- -- 99 2,329,105CULTURE, RECREATION & TOURISM 65,595 -- -- -- 1,528 67,123TRANSPORTATION & DEVELOPMENT 412,295 -- -- -- 8 412,303PUBLIC SAFETY 652,535 -- -- -- -- 652,535HEALTH & WELFARE 13,785,451 -- -- -- -- 13,785,451CORRECTIONS 635,117 -- -- -- -- 635,117YOUTH DEVELOPMENT 76,169 -- -- -- -- 76,169CONSERVATION & ENVIRONMENT 269,001 -- -- -- -- 269,001EDUCATION 862,414 -- -- -- 165 862,579AGRICULTURE & FORESTRY 90,978 -- -- -- 1 90,979ECONOMIC DEVELOPMENT 85,255 -- -- -- -- 85,255MILITARY & VETERANS AFFAIRS 123,548 -- -- -- -- 123,548WORKFORCE SUPPORT & TRAINING 171,606 -- -- -- -- 171,606

INTERGOVERNMENTAL: GENERAL GOVERNMENT 293,526 7 -- -- 66,921 360,454CULTURE, RECREATION & TOURISM 16,421 -- -- -- -- 16,421TRANSPORTATION & DEVELOPMENT 66,199 -- -- -- 7,095 73,294PUBLIC SAFETY 268,577 -- -- -- -- 268,577HEALTH & WELFARE 159,506 -- -- -- -- 159,506CORRECTIONS 50,961 -- -- -- -- 50,961YOUTH DEVELOPMENT 606 -- -- -- -- 606CONSERVATION & ENVIRONMENT 540 -- -- -- -- 540EDUCATION 5,197,126 -- -- 21,080 57,855 5,276,061AGRICULTURE & FORESTRY 1,768 -- -- -- -- 1,768ECONOMIC DEVELOPMENT 137,416 -- -- -- -- 137,416WORKFORCE SUPPORT & TRAINING 37,921 -- -- -- -- 37,921

CAPITAL OUTLAY 156,796 -- 1,397,762 -- 4 1,554,562DEBT SERVICE:

PRINCIPAL 67,687 259,400 -- -- 94,750 421,837INTEREST 28,709 158,330 -- -- 141,693 328,732ISSUANCE COSTS & OTHER CHARGES 2,833 892 -- -- 4,703 8,428

TOTAL EXPENDITURES 26,045,367 418,824 1,397,762 21,080 374,822 28,257,855

EXCESS(DEFICIENCY) OF REVENUES OVER(UNDER) EXPENDITURES (12,907,111) 14,154,680 (1,317,769) (20,766) 682,917 591,951

OTHER FINANCING SOURCES(USES)

TRANSFERS IN 14,151,008 52,450 961,909 68,825 729,501 15,963,693TRANSFERS OUT (447,692) (14,219,538) (7,858) (22,095) (1,397,870) (16,095,053)LONG-TERM DEBT ISSUED -- -- 300,090 -- -- 300,090PREMIUM ON LONG-TERM DEBT ISSUED -- 892 40,775 -- -- 41,667REFUNDING BONDS ISSUED -- -- 14,485 -- 582,470 596,955PREMIUM ON REFUNDING BONDS ISSUED -- -- 788 -- 56,499 57,287PAYMENTS TO REFUNDED BOND ESCROW AGENT -- -- -- -- (638,969) (638,969)SALES OF GENERAL CAPITAL ASSETS 18 1,201 -- -- 22 1,241INSURANCE RECOVERIES 1 10,315 -- -- -- 10,316

TOTAL OTHER FINANCING SOURCES/(USES) 13,703,335 (14,154,680) 1,310,189 46,730 (668,347) 237,227

NET CHANGE IN FUND BALANCES 796,224 -- (7,580) 25,964 14,570 829,178 FUND BALANCES AT BEGINNING OF YEAR AS RESTATED 1,493,923 -- 161,761 1,399,643 2,103,731 5,159,058 FUND BALANCES AT END OF YEAR $ 2,290,147 $ -- $ 154,181 $ 1,425,607 $ 2,118,301 $ 5,988,236 The notes to the financial statements are an integral part of this statement.

State of Louisiana

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Reconciliation of the Change in Fund Balances of Governmental Funds to the Statement of Activities (Expressed in Thousands) Net Change in Fund Balances - Total Governmental Funds $ 829,178 Amounts reported for governmental activities in the Statement of Activities are different due to the following:

Governmental funds report capital outlays as expenditures; however these outlays are capitalized and allocated over their estimated useful lives and reported as depreciation/amortization expense. The following is the difference between the amount of capital outlay expenditures and depreciation/amortization expense for the period:

Capital Outlay $ 646,214 Depreciation/Amortization Expense (618,392) 27,822

Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 26,529

The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are amortized in the statement of activities over multiple periods.

Bond Proceeds and Premiums Received (995,999) Repayment of Bond Principal 421,837 Payment to Refunded Bond Escrow Agent 638,969 Amortization of Bond Premiums 57,324 Amortization of Deferred Refunding Costs (26,259) 95,872

The net results of current year operations of internal service funds is included in the net income of the proprietary funds, but is presented as part of the primary government for government-wide statements. (49,896)

Some long-term liabilities are not recognized at the fund level because they do not represent a claim on current financial resources. Expenses at the government-wide level are recognized when these liabilities are incurred, while expenditures are recognized at the fund level when cash payments are made. The amounts below represent the difference between the expenses incurred at the government-wide level and the current financial resources expended at the fund level.

Compensated Absences 3,864 Notes Payable 148 Accrued Interest (1,840) Estimated Liabilities for Claims (69,105) Total OPEB Liability (57,190) Net Pension Liability 79,170 Pollution Remediation Obligations (6,116) Estimated Liability for Construction Contracts (69,812) Other Liabilities 4,622 Other Payables 2,840 (113,419) Change in Net Position of Governmental Activities $ 816,086 The notes to the financial statements are an integral part of this statement.

P R O P R I E T A R Y F U N D F I N A N C I A L S T A T E M E N T S


PROPRIETARY FUND FINANCIAL STATEMENTS

Major Funds

UNEMPLOYMENT TRUST FUND

The Unemployment Trust Fund accounts for the unemployment insurance contributions from employers and for the payment of unemployment benefits to eligible claimants.

LOUISIANA COMMUNITY AND TECHNICAL COLLEGE SYSTEM

The Louisiana Community and Technical College System provide strategic management and support for seven community colleges, four technical community colleges, and two technical colleges. LCTCS has forty-nine campuses. The colleges award associates degrees, technical diplomas, and industry-based certificates in programs that are aligned with business and industry and local economies.


State of Louisiana

- 33 -

STATEMENT OF NET POSITION

PROPRIETARY FUNDS

JUNE 30, 2018

(EXPRESSED IN THOUSANDS) BUSINESS-TYPE ACTIVITIES - ENTERPRISE FUNDS

UNEMPLOYMENT

TRUST FUND

LOUISIANA COMMUNITY &

TECHNICAL COLLEGES

SYSTEM

NONMAJOR ENTERPRISE

FUNDS TOTAL

GOVERNMENTAL ACTIVITIES -

INTERNAL SERVICE FUNDS

ASSETS CURRENT ASSETS:

CASH & CASH EQUIVALENTS $ 993,745 $ 144,592 $ 411,070 $ 1,549,407 $ 5,635INVESTMENTS -- -- 17,035 17,035 13,923RESTRICTED INVESTMENTS -- -- 33 33 25,393RECEIVABLES (NET) 68,258 19,058 6,947 94,263 44,941DUE FROM OTHER FUNDS -- 2,832 357 3,189 69DUE FROM FEDERAL GOVERNMENT 52 15,721 -- 15,773 --INVENTORIES -- 10 6,594 6,604 4,558PREPAYMENTS -- 558 171 729 3,865NOTES RECEIVABLE -- -- 42,316 42,316 --OTHER CURRENT ASSETS -- 39 385 424 --

TOTAL CURRENT ASSETS 1,062,055 182,810 484,908 1,729,773 98,384 NON-CURRENT ASSETS:

RESTRICTED ASSETS CASH -- 40,245 4,763 45,008 --INVESTMENTS -- 65,991 1,199 67,190 2,406RECEIVABLES -- 3,748 371 4,119 --OTHER ASSETS -- 593 -- 593 --

INVESTMENTS -- 47 3,942 3,989 --RECEIVABLES (NET) -- -- 24 24 --NOTES RECEIVABLE -- -- 616,449 616,449 --CAPITAL ASSETS (NOTE 5)

LAND -- 51,498 9,875 61,373 301BUILDING & IMPROVEMENTS (NET) -- 539,845 39,419 579,264 --MACHINERY & EQUIPMENT (NET) -- 28,735 9,833 38,568 12,224INFRASTRUCTURE (NET) -- -- 300,961 300,961 --INTANGIBLE ASSETS (NET) -- 7,800 230 8,030 --CONSTRUCTION IN PROGRESS -- 39,882 432 40,314 --

OTHER NONCURRENT ASSETS -- 4,145 588 4,733 29TOTAL NON-CURRENT ASSETS -- 782,529 988,086 1,770,615 14,960

TOTAL ASSETS 1,062,055 965,339 1,472,994 3,500,388 113,344

DEFERRED OUTFLOWS OF RESOURCES

OPEB-RELATED DEFERRED OUTFLOWS OF RESOURCES -- 9,823 1,068 10,891 2,105PENSION-RELATED DEFERRED OUTFLOWS OF RESOURCES -- 72,621 12,475 85,096 35,150

TOTAL DEFERRED OUTFLOWS OF RESOURCES -- 82,444 13,543 95,987 37,255 LIABILITIES

CURRENT LIABILITIES: ACCOUNTS PAYABLE -- 37,473 7,285 44,758 23,589ACCRUED INTEREST -- -- 1,998 1,998 --DUE TO OTHER FUNDS 47 378 1,402 1,827 31,231DUE TO FEDERAL GOVERNMENT 2,773 9 -- 2,782 --AMOUNTS HELD IN CUSTODY FOR OTHERS 817 773 11 1,601 --UNEARNED REVENUES -- 11,274 7,510 18,784 7,726OTHER CURRENT LIABILITIES 11,277 4,215 218 15,710 1,494CURRENT PORTION OF LONG-TERM LIABILITIES:

CONTRACTS PAYABLE -- -- -- -- 8,707COMPENSATED ABSENCES PAYABLE -- 1,475 316 1,791 487CAPITAL LEASE OBLIGATIONS -- 90 -- 90 --NOTES PAYABLE -- -- -- -- 4,443BONDS PAYABLE -- 16,665 2,793 19,458 --OTHER LONG-TERM LIABILITIES -- 1 12 13 58

TOTAL CURRENT LIABILITIES 14,914 72,353 21,545 108,812 77,735

NONCURRENT LIABILITIES NONCURRENT PORTION OF LONG-TERM LIABILITIES:

COMPENSATED ABSENCES PAYABLE -- 17,963 1,629 19,592 6,182CAPITAL LEASE OBLIGATIONS -- 2,475 -- 2,475 --NOTES PAYABLE -- -- 1,395 1,395 8,863BONDS PAYABLE -- 404,578 169,034 573,612 --TOTAL OPEB LIABILITY -- 304,451 42,356 346,807 134,678NET PENSION LIABILITY -- 416,491 65,229 481,720 199,601

TOTAL NON-CURRENT LIABILITIES -- 1,145,958 279,643 1,425,601 349,324 TOTAL LIABILITIES 14,914 1,218,311 301,188 1,534,413 427,059


DEFERRED AMOUNTS ON DEBT REFUNDING -- -- 6,321 6,321 --OPEB-RELATED DEFERRED INFLOWS OF RESOURCES -- 17,026 2,712 19,738 9,134PENSION-RELATED DEFERRED INFLOWS OF RESOURCES -- 25,403 4,023 29,426 7,432

TOTAL DEFERRED INFLOWS OF RESOURCES -- 42,429 13,056 55,485 16,566 NET POSITION NET INVESTMENT IN CAPITAL ASSETS -- 263,720 182,602 446,322 (781)RESTRICTED FOR UNEMPLOYMENT COMPENSATION 1,047,141 -- -- 1,047,141 --RESTRICTED FOR ENDOWMENTS - EXPENDABLE -- 2,203 -- 2,203 --RESTRICTED FOR ENDOWMENTS - NONEXPENDABLE -- 7,291 -- 7,291 --RESTRICTED FOR DEBT SERVICE -- -- -- -- 27,799RESTRICTED FOR OTHER PURPOSES -- 153,929 10,362 164,291 --UNRESTRICTED -- (640,100) 979,329 339,229 (320,044)

TOTAL NET POSITION $ 1,047,141 $ (212,957) $ 1,172,293 $ 2,006,477 $ (293,026)


State of Louisiana

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STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

PROPRIETARY FUNDS

FOR THE YEAR ENDED JUNE 30, 2018


UNEMPLOYMENT

TRUST FUND


TECHNICAL COLLEGES

SYSTEM

NONMAJOR ENTERPRISE

FUNDS TOTAL

GOVERNMENTAL ACTIVITIES - INTERNAL

SERVICE FUNDS OPERATING REVENUES:

SALES OF COMMODITIES & SERVICES $ -- $ 119,548 $ 38,233 $ 157,781 $ 338,476ASSESSMENTS 230,420 -- 5,196 235,616 --USE OF MONEY & PROPERTY 20,865 -- 15,188 36,053 23,679LICENSES, PERMITS & FEES -- -- 40,669 40,669 2,863FEDERAL GRANTS & CONTRACTS 829 49,462 810 51,101 --OTHER -- 19,625 5,158 24,783 --

TOTAL OPERATING REVENUES 252,114 188,635 105,254 546,003 365,018 OPERATING EXPENSES:

COST OF SALES & SERVICES -- 306,859 39,827 346,686 40,497ADMINISTRATIVE -- 122,444 49,260 171,704 371,102DEPRECIATION -- 27,555 13,549 41,104 2,591AMORTIZATION -- 2,072 120 2,192 --UNEMPLOYMENT INSURANCE BENEFITS 187,023 -- -- 187,023 --

TOTAL OPERATING EXPENSES 187,023 458,930 102,756 748,709 414,190

OPERATING INCOME (LOSS) 65,091 (270,295) 2,498 (202,706) (49,172) NONOPERATING REVENUES (EXPENSES):

INTERGOVERNMENTAL REVENUES -- -- 14 14 --INTERGOVERNMENTAL EXPENSES -- -- (1,097) (1,097) --GAIN ON SALE OF CAPITAL ASSETS -- -- 1,115 1,115 --LOSS ON SALE OF CAPITAL ASSETS -- -- (1,661) (1,661) (1,150)FEDERAL GRANTS -- 129,681 10,106 139,787 --INTEREST EXPENSE -- (12,822) (4,928) (17,750) (47)OTHER REVENUES -- 1,117 3,052 4,169 922OTHER EXPENSES -- (7,184) (12,321) (19,505) (223)

TOTAL NONOPERATING REVENUES (EXPENSES) -- 110,792 (5,720) 105,072 (498)

INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS 65,091 (159,503) (3,222) (97,634) (49,670)

CAPITAL CONTRIBUTIONS -- 22,895 24,952 47,847 --TRANSFERS IN -- 170,527 13,062 183,589 --TRANSFERS OUT -- -- (52,003) (52,003) (226)

CHANGE IN NET POSITION 65,091 33,919 (17,211) 81,799 (49,896) TOTAL NET POSITION - BEGINNING AS RESTATED 982,050 (246,876) 1,189,504 1,924,678 (243,130) TOTAL NET POSITION - ENDING $ 1,047,141 $ (212,957) $ 1,172,293 $ 2,006,477 $ (293,026) The notes to the financial statements are an integral part of this statement.

State of Louisiana

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STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS



UNEMPLOYMENT

TRUST FUND


TECHNICAL COLLEGES

SYSTEM

NONMAJOR ENTERPRISE

FUNDS TOTAL

GOVERNMENTAL ACTIVITIES - INTERNAL

SERVICE FUNDS CASH FLOWS FROM OPERATING ACTIVITIES:

RECEIPTS FROM CUSTOMERS $ 213,596 $ 121,219 $ 95,539 $ 430,354 $ 24,368RECEIPTS FROM INTERFUND SERVICES PROVIDED -- -- 51 51 293,903RECEIPTS FROM INTERFUND REIMBURSEMENTS -- -- 45 45 --RECEIPTS OF PRINCIPAL/INTEREST FROM LOAN PROGRAMS -- -- 42,335 42,335 --OTHER OPERATING RECEIPTS 20,865 64,630 9,019 94,514 --PAYMENTS TO SUPPLIERS & SERVICE PROVIDERS (182,530) (106,231) (48,465) (337,226) (141,442)PAYMENTS FOR LOANS MADE UNDER LOAN PROGRAMS -- -- (90,434) (90,434) --PAYMENTS TO EMPLOYEES FOR SERVICES -- (263,127) (30,965) (294,092) (171,057)PAYMENTS FOR INTERFUND SERVICES USED -- -- (4,836) (4,836) (19,043)PAYMENTS FOR SCHOLARSHIPS AND FELLOWSHIPS -- (57,356) -- (57,356) --OTHER OPERATING PAYMENTS -- -- (108) (108) --

NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 51,931 (240,865) (27,819) (216,753) (13,271) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

PROCEEDS FROM THE ISSUANCE OF NON-CAPITAL DEBT -- -- 30,102 30,102 --RECEIPTS FROM OPERATING GRANTS -- 133,337 9,837 143,174 --RECEIPTS FOR PRINCIPAL AND INTEREST DEBT SERVICE -- -- 43,414 43,414 --RECEIPTS FROM OTHER FUNDS -- 289,705 17,683 307,388 2,891PAYMENTS FOR PRINCIPAL ON NON-CAPITAL DEBT -- -- (29,900) (29,900) --PAYMENTS FOR INTEREST ON NON-CAPITAL DEBT -- -- (56) (56) --PAYMENTS FOR GRANTS AND SUBSIDIES -- -- (8,779) (8,779) --PAYMENTS TO OTHER FUNDS -- (154,532) (56,567) (211,099) (223)

NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES -- 268,510 5,734 274,244 2,668 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

PROCEEDS FROM THE ISSUANCE OF CAPITAL DEBT -- 156,430 -- 156,430 --RECEIPTS FROM CAPITAL GRANTS -- 44,242 24,651 68,893 --PROCEEDS FROM THE SALE OF CAPITAL ASSETS -- -- 1,188 1,188 --PAYMENTS TO ACQUIRE, CONSTRUCT & IMPROVE CAPITAL ASSETS -- (44,929) (5,848) (50,777) (30)PAYMENTS FOR PRINCIPAL ON CAPITAL DEBT -- (16,890) (9,590) (26,480) --PAYMENTS FOR INTEREST ON CAPITAL DEBT -- (170,879) (5,594) (176,473) --

NET CASH PROVIDED (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES -- (32,026) 4,807 (27,219) (30)

CASH FLOWS FROM INVESTING ACTIVITIES:

PURCHASES OF INVESTMENTS -- (37,694) (22,826) (60,520) (7,905)PROCEEDS FROM THE SALE OF INVESTMENTS -- 49,159 19,000 68,159 5,808INTEREST AND DIVIDENDS -- 1,390 359 1,749 886

NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES -- 12,855 (3,467) 9,388 (1,211) NET INCREASE/(DECREASE) IN CASH & CASH EQUIVALENTS 51,931 8,474 (20,745) 39,660 (11,844) CASH & CASH EQUIVALENTS AT BEGINNING OF YEAR AS RESTATED 941,814 176,363 436,578 1,554,755 17,479 CASH & CASH EQUIVALENTS AT END OF YEAR $ 993,745 $ 184,837 $ 415,833 $ 1,594,415 $ 5,635 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH

PROVIDED (USED) BY OPERATING ACTIVITIES: OPERATING INCOME (LOSS) $ 65,091 $ (270,295) $ 2,498 $ (202,706) $ (49,172) ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:

DEPRECIATION/AMORTIZATION -- 29,627 13,669 43,296 2,591NONEMPLOYER CONTRIBUTING ENTITY REVENUE -- 1,276 1 1,277 --OTHER -- (2,588) (1,360) (3,948) --CHANGES IN ASSETS AND LIABILITIES:

(INCREASE)/DECREASE IN ACCOUNTS RECEIVABLE (10,732) (3,856) (145) (14,733) (20,710)(INCREASE)/DECREASE IN DUE FROM OTHER FUNDS (40) 764 550 1,274 (69)(INCREASE)/DECREASE IN PREPAYMENTS -- 333 (55) 278 (1,325)(INCREASE)/DECREASE IN INVENTORIES -- (3) 263 260 (3,108)(INCREASE)/DECREASE IN OTHER ASSETS -- 60 (49,919) (49,859) 202(INCREASE)/DECREASE IN DEFERRED OUTFLOWS RELATED TO OPEB -- (495) (718) (1,213) (235)(INCREASE)/DECREASE IN DEFERRED OUTFLOWS RELATED TO PENSIONS -- 21,488 5,969 27,457 78,557INCREASE/(DECREASE) IN ACCOUNTS PAYABLE & ACCRUALS 167 3,660 278 4,105 (3,431)INCREASE/(DECREASE) IN COMPENSATED ABSENCES -- 409 61 470 66INCREASE/(DECREASE) IN DUE TO OTHER FUNDS (5,150) (17) (33) (5,200) (2,050)INCREASE/(DECREASE) IN UNEARNED REVENUES -- 610 4,917 5,527 7,553INCREASE/(DECREASE) IN TOTAL OPEB LIABILITY -- (13,389) (1,578) (14,967) (5,923)INCREASE/(DECREASE) IN NET PENSION LIABILITY -- (45,296) (6,446) (51,742) (21,661)INCREASE/(DECREASE) IN OTHER LIABILITIES 2,595 4,139 867 7,601 (1,249)INCREASE/(DECREASE) IN DEFERRED INFLOWS RELATED TO OPEB -- 17,025 2,535 19,560 9,134INCREASE/(DECREASE) IN DEFERRED INFLOWS RELATED TO PENSIONS -- 15,683 827 16,510 (2,441)

NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ 51,931 $ (240,865) $ (27,819) $ (216,753) $ (13,271) (Continued)

State of Louisiana

- 36 -

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS


(EXPRESSED IN THOUSANDS)

NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES

2018

LOUISIANA AGRICULTURAL FINANCE AUTHORITY GAIN ON DISPOSAL OF CAPITAL ASSETS 159 LOSS ON DISPOSAL OF CAPITAL ASSETS (78)

LOUISIANA COMMUNITY AND TECHNICAL COLLEGE SYSTEM LOSS ON DISPOSAL OF CAPITAL ASSETS (650) CONTRIBUTIONS OF CAPITAL ASSETS 3,343 CAPITAL APPROPRIATON FOR PURCHASE OF CAPITAL ASSETS 12,768 CAPITALIZED INTEREST INCLUDING CAPITALIZED AMORTIZATION 4,111 UNREALIZED LOSS ON INVESTMENTS (2,181) LOSS ON BOND REFUNDING (7,127) DECREASE IN CAPITAL ACCOUNTS AND RETAINAGE PAYABLE (4,759)

LOUISIANA TRANSPORTATION AUTHORITY CONTRIBUTIONS OF CAPITAL ASSETS 301

PRISON ENTERPRISES GAIN ON DISPOSAL OF CAPITAL ASSETS 956 LOSS ON DISPOSAL OF CAPITAL ASSETS (1,583)

(Concluded)


F I D U C I A R Y F U N DF I N A N C I A L S T A T E M E N T S


FIDUCIARY FUND FINANCIAL STATEMENTS

FIDUCIARY FUNDSBy definition, these funds account for assets held by a governmental unit in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and/or other funds, and cannot be used to address activities or obligations of the government. There are four types of fiduciary funds:

PENSION TRUST FUNDS

Pension trust funds account for resources held in trust for members and beneficiaries of the four employee pension plans. Four separate pension trust funds are maintained for state government employees, teachers, and law enforcement officers. The pension funds are as follows:

Louisiana School Employees’ Retirement System

Louisiana State Employees’ Retirement System

Louisiana State Police Retirement System

Teachers’ Retirement System of Louisiana

INVESTMENT TRUST FUNDS

Investment trust funds account for the portion of the government’s investment pools that belong to others. The State Treasury maintains two separate investment trust funds. Investment trust funds are:

Louisiana Asset Management Pool

Education Excellence Local Government Investment Trust Fund

PRIVATE-PURPOSE TRUST FUNDS

Private-purpose trust funds report all other trust arrangements benefiting those outside the government. Currently, the following two entities are the only private-purpose trust funds that Louisiana maintains.

Louisiana Education Tuition and Savings Fund

Achieving a Better Life Experience in Louisiana Fund

AGENCY FUNDS

Agency funds contain resources held by the government in a temporary, purely custodial capacity and do not involve measurement of results of operations. Among the largest of the agency funds are the Escrow Fund, Insurance Trusts, Payroll Clearing Fund, and the Miscellaneous Agency Funds.


State of Louisiana

- 37 -

STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2018 (EXPRESSED IN THOUSANDS)

PENSION TRUST

FUNDS INVESTMENT

TRUST FUNDS PRIVATE-PURPOSE

TRUST FUNDS * AGENCY FUNDS ASSETS CASH & CASH EQUIVALENTS $ 505,080 $ 5,644 $ 34,778 $ 314,786 RECEIVABLES:

EMPLOYER CONTRIBUTIONS 262,748 -- -- --MEMBER CONTRIBUTIONS 74,802 -- -- --INVESTMENT PROCEEDS 2,330,705 -- -- --INTEREST & DIVIDENDS 87,473 491 677 --OTHER 18,969 166 -- 59,592

TOTAL RECEIVABLES 2,774,697 657 677 59,592

INVESTMENTS (AT FAIR VALUE):

SHORT-TERM INVESTMENTS 1,276,131 726,941 -- --U.S. GOVERNMENT AND AGENCY OBLIGATIONS 1,512,143 661,075 165,585 --BONDS - DOMESTIC 2,254,261 5,764 46,789 --BONDS - INTERNATIONAL 1,964,891 -- -- --EQUITIES - DOMESTIC 10,058,386 -- 552,650 --EQUITIES - INTERNATIONAL 8,366,226 -- 31,630 --ALTERNATIVE INVESTMENTS 9,964,711 -- -- --COLLATERAL HELD UNDER SECURITIES LENDING PROGRAM 4,970,207 -- -- --REPURCHASE AGREEMENTS -- 107,313 -- --OTHER INVESTMENTS 2,547 31,648 -- 287,560

INVESTMENTS (AT CONTRACT VALUE): SYNTHETIC GUARANTEED INVESTMENT CONTRACT 509,753 -- -- --

TOTAL INVESTMENTS 40,879,256 1,532,741 796,654 287,560

OTHER ASSETS 319 14 -- 482 PROPERTY PLANT AND EQUIPMENT (NET) 13,806 37 -- --

TOTAL ASSETS 44,173,158 1,539,093 832,109 662,420 DEFERRED OUTFLOWS OF RESOURCES OPEB-RELATED DEFERRED OUTFLOWS OF RESOURCES 1,137 -- -- --PENSION-RELATED DEFERRED OUTFLOWS OF RESOURCES 2,612 -- -- --

TOTAL DEFERRED OUTFLOWS OF RESOURCES 3,749 -- -- --

LIABILITIES ACCOUNTS PAYABLE 26,621 233 384 --RETIREMENT BENEFITS PAYABLE 7,797 -- -- --INVESTMENT COMMITMENTS PAYABLE 2,948,467 -- -- --AMOUNTS HELD IN CUSTODY FOR OTHERS -- -- -- 590,405OBLIGATIONS UNDER SECURITIES LENDING PROGRAM 4,970,152 -- -- --TOTAL OPEB LIABILITY 51,989 -- -- --NET PENSION LIABILITY 17,763 -- -- --REFUNDS PAYABLE 5,977 -- -- --OTHER LIABILITIES 1,625 59 -- 72,015

TOTAL LIABILITIES 8,030,391 292 384 662,420

DEFERRED INFLOWS OF RESOURCES OPEB-RELATED DEFERRED INFLOWS OF RESOURCES 3,139 -- -- --PENSION-RELATED DEFERRED INFLOWS OF RESOURCES 540 -- -- --

TOTAL DEFERRED INFLOWS OF RESOURCES 3,679 -- -- -- NET POSITION RESTRICTED FOR PENSIONS 36,142,837 -- -- --HELD IN TRUST FOR INVESTMENT POOL PARTICIPANTS -- 1,538,801 -- --HELD IN TRUST FOR INDIVIDUALS, PRIVATE ORGANIZATIONS, AND OTHER GOVERNMENTS -- -- 831,725 --

TOTAL NET POSITION $ 36,142,837 $ 1,538,801 $ 831,725 $ -- * For the period ending December 31, 2017. The notes to the financial statements are an integral part of this statement.

State of Louisiana

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STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS FOR THE YEAR ENDED JUNE 30, 2018 (EXPRESSED IN THOUSANDS)

PENSION TRUST

FUNDS INVESTMENT

TRUST FUNDS PRIVATE-PURPOSE

TRUST FUNDS * ADDITIONS CONTRIBUTIONS:

EMPLOYER $ 2,062,691 $ -- $ --MEMBER 520,039 -- --POOL PARTICIPANTS (DEPOSITS) -- 2,240,570 86,761NON-EMPLOYER 39,550 -- --

TOTAL CONTRIBUTIONS 2,622,280 2,240,570 86,761

INVESTMENT INCOME: NET INCREASE (DECREASE) IN FAIR VALUE OF INVESTMENTS 2,722,812 (631) 71,377INTEREST & DIVIDENDS 589,991 7,914 16,842ALTERNATIVE INVESTMENT INCOME 209,606 -- --LESS ALTERNATIVE INVESTMENT EXPENSES (108,503) -- --GAIN ON SALE OF INVESTMENTS -- 7 --SECURITIES LENDING INCOME 59,165 -- --LESS SECURITIES LENDING EXPENSES (42,657) -- --OTHER INVESTMENT INCOME 3,644 9,428 --LESS INVESTMENT EXPENSES OTHER THAN

ALTERNATIVE INVESTMENTS AND SECURITIES LENDING (92,515) -- --

NET INVESTMENT INCOME 3,341,543 16,718 88,219 OTHER INCOME 30,365 56 --

TOTAL ADDITIONS 5,994,188 2,257,344 174,980 DEDUCTIONS RETIREMENT BENEFITS 3,670,700 -- --REFUNDS OF CONTRIBUTIONS 88,708 -- --ADMINISTRATIVE EXPENSES 58,168 2,118 --DEPRECIATION & AMORTIZATION EXPENSES 1,586 -- --DISTRIBUTIONS TO POOL PARTICIPANTS -- 1,980,951 47,496OTHER 537 -- --

TOTAL DEDUCTIONS 3,819,699 1,983,069 47,496 CHANGE IN NET POSITION: RESTRICTED FOR PENSIONS 2,174,489 -- --HELD IN TRUST FOR INVESTMENT POOL PARTICIPANTS -- 274,275 --HELD IN TRUST FOR INDIVIDUALS, PRIVATE ORGANIZATIONS, AND OTHER GOVERNMENTS -- -- 127,484 NET POSITION - BEGINNING OF YEAR AS RESTATED 33,968,348 1,264,526 704,241 NET POSITION - END OF YEAR $ 36,142,837 $ 1,538,801 $ 831,725 * For the period ending December 31, 2017. The notes to the financial statements are an integral part of this statement.

C O M P O N E N T U N I TF I N A N C I A L S T A T E M E N T S


COMPONENT UNIT FINANCIAL STATEMENTSMajor Component Units

COLLEGES AND UNIVERSITIES

The college and university funds are used to account for the transactions relating to public institutions of higher education. The university systems are listed below. Louisiana Community and Technical College System is listed with the enterprise funds.

Louisiana State University System includes Louisiana State University and A&M College and Louisiana State University Agricultural Center at Baton Rouge, Louisiana State University at Alexandria, Louisiana State University at Eunice, Louisiana State University Medical Center at New Orleans, Louisiana State University Medical Center at Shreveport, Paul M. Hebert Law Center at Baton Rouge, and Pennington Biomedical Research Center at Baton Rouge. Louisiana State University’s Board of Supervisors also operates the general medical facilities in the state.

Southern University System includes Southern University and A&M College and Southern University Agricultural Research and Extension Center at Baton Rouge, Southern University at New Orleans, Southern University at Shreveport, and Southern University Law Center at Baton Rouge.

University of Louisiana System includes Grambling State University at Grambling, Louisiana Tech University at Ruston, McNeese State University at Lake Charles, Nicholls State University at Thibodaux, Southeastern Louisiana University at Hammond, Northwestern State University at Natchitoches, University of Louisiana at Monroe, University of Louisiana at Lafayette, and University of New Orleans at New Orleans.

Board of Regents is the policy making board for each of the university systems listed above and each System’s Board of Supervisors.

LOUISIANA STADIUM AND EXPOSITION DISTRICT

The purpose of the district is to plan, finance, construct, develop, maintain, and operate facilities, including an enclosed and covered stadium within the district for various sporting events, exhibitions, and public meetings. The District is responsible for servicing and retiring the principal and interest on all bonds issued.

LOUISIANA LOTTERY CORPORATION

The Louisiana Lottery Corporation was created to conduct and administer lottery games in the state. Quarterly, the corporation transfers net revenues determined to be surplus to its needs, but not less than 35% of gross revenues each year to the Lottery Proceeds Fund.


- 39 -

State of Louisiana

- 40 -

COMBINING STATEMENT OF NET POSITION

COMPONENT UNITS JUNE 30, 2018 (EXPRESSED IN THOUSANDS)

LOUISIANA STATE

UNIVERSITY SYSTEM UNIVERSITY OF

LOUISIANA SYSTEM SOUTHERN UNIVERSITY

SYSTEM ASSETS CURRENT ASSETS:

CASH & CASH EQUIVALENTS $ 206,010 $ 273,382 $ 8,006RESTRICTED CASH & CASH EQUIVALENTS 60,827 -- --INVESTMENTS 399,606 35,384 --RESTRICTED INVESTMENTS -- -- --RECEIVABLES (NET) 280,996 85,152 10,916PLEDGES RECEIVABLE (NET) 22,316 5,639 913LEASES RECEIVABLE (NET) 62,661 -- --AMOUNTS DUE FROM PRIMARY GOVERNMENT 10,730 1,917 3,759DUE FROM FEDERAL GOVERNMENT 39,231 10,279 13,050INVENTORIES 6,798 5,474 299PREPAYMENTS 9,627 10,595 4,997NOTES RECEIVABLE 3,080 3,166 238OTHER CURRENT ASSETS 21,252 1,231 2,530

TOTAL CURRENT ASSETS 1,123,134 432,219 44,708 NON-CURRENT ASSETS:

RESTRICTED ASSETS 1,461,686 599,575 28,864INVESTMENTS 32,118 33 --NOTES RECEIVABLE (NET) -- -- --PLEDGES RECEIVABLE (NET) 14,711 1,351 --LEASES RECEIVABLE (NET) 3,947,286 -- --CAPITAL ASSETS

LAND 88,860 100,000 8,500BUILDING & IMPROVEMENTS (NET) 1,677,847 1,402,627 241,787MACHINERY & EQUIPMENT (NET) 232,132 88,362 9,480INFRASTRUCTURE (NET) 21,748 19,412 7,108INTANGIBLE ASSETS (NET) 529 7,227 4CONSTRUCTION IN PROGRESS 34,686 143,588 83,776

OTHER NONCURRENT ASSETS 48,657 2,302 2,223TOTAL NON-CURRENT ASSETS 7,560,260 2,364,477 381,742

TOTAL ASSETS 8,683,394 2,796,696 426,450


DEFERRED AMOUNTS ON DEBT REFUNDING 21,618 3,102 --OPEB-RELATED DEFERRED OUTFLOWS OF RESOURCES 44,835 28,506 6,311PENSION-RELATED DEFERRED OUTFLOWS OF RESOURCES 269,639 195,961 31,030

TOTAL DEFERRED OUTFLOWS OF RESOURCES 336,092 227,569 37,341 LIABILITIES CURRENT LIABILITIES:

ACCOUNTS PAYABLE 122,549 70,165 15,185ACCRUED INTEREST -- 4,129 --AMOUNTS DUE TO PRIMARY GOVERNMENT 2,691 563 --DUE TO FEDERAL GOVERNMENT 5,202 -- --AMOUNTS HELD IN CUSTODY FOR OTHERS 36,980 10,529 1,458UNEARNED REVENUES 239,997 45,890 8,133OTHER CURRENT LIABILITIES 2,711 4,331 2,780CURRENT PORTION OF LONG-TERM LIABILITIES:

CONTRACTS PAYABLE -- 766 --COMPENSATED ABSENCES PAYABLE 8,371 4,410 904CAPITAL LEASE OBLIGATIONS 3,543 1,589 --NOTES PAYABLE 2,874 750 1,431BONDS PAYABLE 27,676 25,870 1,654ESTIMATED LIABILITY FOR CLAIMS -- -- 188OTHER LONG-TERM LIABILITIES 67,913 3,785 93

TOTAL CURRENT LIABILITIES 520,507 172,777 31,826

NONCURRENT LIABILITIES: NONCURRENT PORTION OF LONG-TERM LIABILITIES:

COMPENSATED ABSENCES PAYABLE 77,292 45,850 11,437CAPITAL LEASE OBLIGATIONS 13,425 5,307 --NOTES PAYABLE 31,906 5,606 36,819BONDS PAYABLE 552,704 765,948 23,673ESTIMATED LIABILITY FOR CLAIMS -- -- 34TOTAL OPEB LIABILITY 1,735,696 1,008,420 184,991NET PENSION LIABILITY 1,603,418 1,087,229 203,361OTHER LONG-TERM LIABILITIES 50,472 6,939 3,200

UNEARNED REVENUE 3,406,778 3,007 --TOTAL NON-CURRENT LIABILITIES 7,471,691 2,928,306 463,515

TOTAL LIABILITIES 7,992,198 3,101,083 495,341


DEFERRED AMOUNTS ON DEBT REFUNDING -- -- --GRANTS RECEIVED PRIOR TO MEETING TIME REQUIREMENTS -- -- --OPEB-RELATED DEFERRED INFLOWS OF RESOURCES 90,183 56,509 10,099PENSION-RELATED DEFERRED INFLOWS OF RESOURCES 179,675 72,101 13,516

TOTAL DEFERRED INFLOWS OF RESOURCES 269,858 128,610 23,615 NET POSITION NET INVESTMENT IN CAPITAL ASSETS 1,446,843 1,051,353 284,789RESTRICTED FOR:

CAPITAL PROJECTS -- 6,067 --DEBT SERVICE -- 7,147 --NONEXPENDABLE 595,812 279,361 18,899EXPENDABLE 781,294 311,041 24,694OTHER PURPOSES -- -- --

UNRESTRICTED (2,066,519) (1,860,397) (383,547)TOTAL NET POSITION $ 757,430 $ (205,428) $ (55,165)


State of Louisiana

- 41 -

BOARD OF REGENTS LOUISIANA LOTTERY

CORPORATION LOUISIANA STADIUM & EXPOSITION DISTRICT

NONMAJOR DISCRETE COMPONENT UNITS TOTAL COMPONENT UNITS

$ 10,118 $ 20,470 $ 95,001 $ 360,892 $ 973,879 -- -- -- 211,306 272,133 -- 3,390 -- 299,064 737,444 -- -- -- 85,073 85,073 5,033 12,906 1,285 80,051 476,339 -- -- -- -- 28,868 -- -- -- 753 63,414 7,465 -- 10,969 9,823 44,663 13,901 -- -- 5,142 81,603 -- -- 36 1,520 14,127 -- 155 121 4,960 30,455 -- -- -- 4,564 11,048 -- 14 -- 8,615 33,642 36,517 36,935 107,412 1,071,763 2,852,688 -- -- 13,552 494,132 2,597,809 -- 26,393 -- 150,044 208,588 -- -- -- 10,528 10,528 -- -- -- -- 16,062 -- -- -- -- 3,947,286 -- 1,542 17,069 78,350 294,321 3,581 2,536 302,444 334,478 3,965,300 2,455 384 4,902 28,681 366,396 -- -- -- 1,086,618 1,134,886 -- -- -- 6,164 13,924 -- -- 18,638 6,816,081 7,096,769 -- 5,611 36 6,416 65,245 6,036 36,466 356,641 9,011,492 19,717,114 42,553 73,401 464,053 10,083,255 22,569,802 -- -- 28,570 13,213 66,503 685 -- -- 7,691 88,028 11,174 -- -- 64,203 572,007 11,859 -- 28,570 85,107 726,538 590 2,516 15,508 37,459 263,972 -- -- -- 9,260 13,389 272 13,318 -- 11,414 28,258 13,608 -- -- 7,339 26,149 -- -- -- 8 48,975 -- -- 32,993 46,308 373,321 -- 30,287 -- 10,445 50,554 -- -- -- 5,352 6,118 102 412 492 3,808 18,499 -- -- 610 95 5,837 -- -- -- 2,347 7,402 -- -- 12,340 210,478 278,018 -- -- -- 40,487 40,675 -- -- 863 571 73,225 14,572 46,533 62,806 385,371 1,234,392 1,159 -- -- 7,614 143,352 -- -- 9,857 126 28,715 -- -- -- 346 74,677 -- -- 336,029 1,259,516 2,937,870 -- -- -- 2,637 2,671 24,174 -- -- 237,391 3,190,672 34,199 -- -- 367,683 3,295,890 -- 13,655 7,720 5,952 87,938

-- -- -- 1,852 3,411,637 59,532 13,655 353,606 1,883,117 13,173,422 74,104 60,188 416,412 2,268,488 14,407,814 -- -- -- 286 286 -- -- -- 4,010 4,010 1,381 -- -- 13,557 171,729 3,921 -- -- 18,000 287,213 5,302 -- -- 35,853 463,238 6,036 4,463 98,780 8,290,813 11,183,077 -- -- 13,552 8,731 28,350 -- -- 43,621 188,494 239,262 -- -- -- -- 894,072 13,900 -- -- -- 1,130,929 -- -- -- 369,838 369,838 (44,930) 8,750 (79,742) (993,855) (5,420,240)

$ (24,994) $ 13,213 $ 76,211 $ 7,864,021 $ 8,425,288

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COMBINING STATEMENT OF ACTIVITIES COMPONENT UNITS FOR THE YEAR ENDED JUNE 30, 2018 (EXPRESSED IN THOUSAND) PROGRAM REVENUES

EXPENSES CHARGES FOR

SERVICES

OPERATING GRANTS &

CONTRIBUTIONS

CAPITAL GRANTS &

CONTRIBUTIONS NET (EXPENSE)

REVENUE COMPONENT UNITS:

LOUISIANA STATE UNIVERSITY SYSTEM $ 2,351,190 $ 928,859 $ 730,309 $ 47,135 $ (644,887) UNIVERSITY OF LOUISIANA SYSTEM 1,361,020 747,595 149,054 88,831 (375,540) SOUTHERN UNIVERSITY SYSTEM 236,702 79,731 49,199 49,324 (58,448) BOARD OF REGENTS 418,406 13,035 37,414 -- (367,957) LOUISIANA LOTTERY CORPORATION 491,973 490,958 -- -- (1,015) LOUISIANA STADIUM & EXPOSITION DISTRICT 145,590 61,118 522 3,375 (80,575) NONMAJOR COMPONENT UNITS 714,993 447,535 210,377 10,696 (46,385)

TOTAL COMPONENT UNITS $ 5,719,874 $ 2,768,831 $ 1,176,875 $ 199,361 $ (1,574,807) GENERAL REVENUES

PAYMENTS FROM PRIMARY GOVERNMENT

OTHER GENERAL

REVENUES

ADDITIONS TO PERMANENT

ENDOWMENTS CHANGE IN NET

POSITION

NET POSITION BEGINNING OF

YEAR AS RESTATED

NET POSITION END OF YEAR

COMPONENT UNITS:

LOUISIANA STATE UNIVERSITY SYSTEM $ 421,267 $ 369,948 $ 19,257 $ 165,585 $ 591,845 $ 757,430UNIVERSITY OF LOUISIANA SYSTEM 231,673 250,620 3,725 110,478 (315,906) (205,428)SOUTHERN UNIVERSITY SYSTEM 46,118 90,199 100 77,969 (133,134) (55,165)BOARD OF REGENTS 362,015 -- -- (5,942) (19,052) (24,994)LOUISIANA LOTTERY CORPORATION -- 1,135 -- 120 13,093 13,213LOUISIANA STADIUM & EXPOSITION DISTRICT 69,339 2,917 -- (8,319) 84,530 76,211NONMAJOR COMPONENT UNITS 157,292 951,250 -- 1,062,157 6,801,864 7,864,021

TOTAL COMPONENT UNITS $ 1,287,704 $ 1,666,069 $ 23,082 $ 1,402,048 $ 7,023,240 $ 8,425,288 The notes to the financial statements are an integral part of this statement.

N O T E S T O T H E B A S I CF I N A N C I A L S T A T E M E N T S


Note 1 Summary of Significant Accounting Policies

Note 2 Deposits and Investments

Note 3 Accounts Receivable and Accounts Payable

Note 4 Intra-Entity Transactions

Note 5 Capital Assets

Note 6 Employee Benefits – Pensions

Note 6A Employee Benefits – Other Postemployment Benefits (OPEB)

Note 7 Leases

Note 8 Long-Term Obligations

Note 9 Contingencies and Commitments

Note 10 Fund Balance/Net Position Disclosures

Note 11 Tax Abatement Programs

Note 12 Other Disclosures

Note 13 Subsequent Events


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NOTES TO THE BASIC FINANCIAL STATEMENTSJune 30, 2018

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. REPORTING ENTITY

The State’s basic financial statements consist of financial information of the various funds, departments, agencies, activities, and organizational units that comprise the State’s legal entity as well as financial information of legally separate entities for which the State is financially accountable (component units). GASB Statement No. 14, The Financial Reporting Entity, as amended, provides that a legally separate entity is considered a component unit of the State if at least one of the following criteria is met:

The State appoints a voting majority of the organization’s governing body and is either able to impose its will on the organization or there is a potential financial benefit/burden to the State.

The entity is fiscally dependent on the State and there is a potential financial benefit/burden to the State. The nature and significance of the relationship between the State and the entity is such that exclusion would cause the

financial statements of the State to be misleading.

Component unit financial information may either be reported as a part of (blended presentation) or presented separately from (discrete presentation) the financial information of the primary government (the State). Blended component units are, in substance, part of the primary government’s operations, even though they are legally separate entities. Thus, blended component units are appropriately presented as funds of the primary government. Aggregated discretely presented component unit financial information is reported in a separate column in the government-wide financial statements to emphasize that these entities are legally separate from the State.

GASB Statement No. 80 amends the blending requirements for the financial statement presentation of component units of all state and local governments (established in paragraph 53 of Statement No. 14.) It requires blending of a component unit incorporated as a not-for-profit corporation in which the primary government is the sole corporate member.

Blended Component Units

A component unit is blended if any one of the following criteria are met:

The component unit’s governing body is substantively the same as the governing body of the primary government and there is a financial benefit or burden relationship between the primary government and the component unit or management of the primary government has operational responsibility for the component unit.

The component unit provides services exclusively, or almost exclusively, to the primary government or otherwise exclusively, or almost exclusively, benefits the primary government even though it does not provide services directly to the primary government.

The component unit’s outstanding debt is expected to be repaid entirely or almost entirely with resources of the primary government.

The following component units are blended because they provide services exclusively, or almost exclusively, to the primary government:

Tobacco Settlement Financing Corporation, P.O. Box 44154, Baton Rouge, LA 70804-4154, a special purpose, public corporate entity, was established to access a portion of the State’s tobacco settlement revenues in a lump sum by issuing bonds secured by a pledge of 60% of the State’s allocation of tobacco settlement revenues. Since the issuance of the bonds in fiscal year 2002, the corporation’s duties are limited to paying principal and interest on outstanding bonds and refunding outstanding bonds when economically advantageous.

Louisiana Correctional Facilities Corporation, P.O. Box 94095, Baton Rouge, LA 70804-9095, a nonprofit corporation, acquires and finances correctional facilities for lease to the State and is authorized to issue revenue bonds for its purposes. The board of directors consists of five members appointed by the Governor.

Office Facilities Corporation, P.O. Box 94095, Baton Rouge, LA 70804-9095, a nonprofit corporation, finances the acquisition or construction of public facilities for lease to the State through the issuance of revenue bonds. The board of directors consists of five members appointed by the Governor.

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Louisiana Transportation Authority, P.O. Box 94245, Baton Rouge, LA 70804-9245, is a nonprofit corporation established in 2001 to promote, plan, finance, construct, operate, and maintain specific tollways or transitways constructed within Louisiana. The board of directors consists of nine members, including the Governor, the Department of Transportation and the Department of Economic Development secretaries, President of the Senate and Speaker of the House of Representatives, or their designees.

Louisiana State Police Retirement System, 9224 Jefferson Highway, Baton Rouge, LA 70809, was established in 1938 for the benefit of commissioned law enforcement officers as well as the secretary and deputy secretary of the Department of Public Safety.

The following component units are blended because their outstanding debt is expected to be repaid entirely or almost entirely with resources of the State.

Board of Supervisors of the Louisiana Community and Technical College System (LCTCS), 265 S. Foster Drive, Baton Rouge, LA 70806, is the managing and supervising board of seven community colleges, four technical community colleges, and two technical colleges.

Louisiana Agricultural Finance Authority, P.O. Box 3334, Baton Rouge, LA 70821-3334, was created to alleviate the severe shortage of capital and credit available for investment in agriculture in the State and to promote agriculture and forestry in Louisiana.

Discretely Presented Component Units

As previously mentioned, aggregate discretely presented component units are reported in a separate column to emphasize that they are legally separate from the State. The voting majority of the following discretely presented component units’ board members are appointed by the State and State funds are appropriated for operating support to these entities, creating a financial benefit/burden relationship.

Board of Regents, 1201 North Third Street, Suite 6-200, Baton Rouge, LA 70802, is the policy-making board for the four higher education systems of the State. The following programs are now within the Board of Regents: Louisiana Office of Student Financial Assistance (LOSFA), Louisiana Universities Marine Consortium for Research and Education (LUMCON), and the Louisiana Tuition Trust Authority.

Board of Supervisors of the Louisiana State University System, 3810 West Lakeshore Drive Rm 107, Baton Rouge, LA 70808, is the managing and supervising board for the Louisiana State University System (LSU), which includes the following campuses:

o LSU and A&M College at Baton Rougeo LSU Agricultural Center at Baton Rougeo LSU at Alexandriao LSU at Euniceo LSU Health Sciences Center at New Orleanso LSU Health Sciences Center at Shreveporto LSU at Shreveporto Paul M. Hebert Law Center at Baton Rougeo Pennington Biomedical Research Center at Baton Rouge

The Board of Supervisors of the LSU System also operates the Lallie Kemp Regional Medical Center in Independence, Louisiana.

Board of Supervisors of the University of Louisiana System, 1201 North Third Street, Suite 7-300, Baton Rouge, LA 70802, is the managing and supervising board for the following regional universities:

o Grambling State University at Gramblingo Louisiana Tech University at Rustono McNeese State University at Lake Charleso Nicholls State University at Thibodauxo Northwestern State University at Natchitocheso Southeastern Louisiana University at Hammondo University of Louisiana at Lafayetteo University of Louisiana at Monroeo University of New Orleans

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Board of Supervisors of the Southern University System, P.O. Box 10878, Baton Rouge, LA 70813, is the managing and supervising board of the Southern University System, which includes the following campuses:

o Southern University and A&M College at Baton Rougeo Southern University at New Orleanso Southern University at Shreveport o Southern University Law Center at Baton Rougeo Southern University Agricultural Research and Extension Center at Baton Rouge

Included in the balances and operating results of the university systems is financial activity for major foundations that contribute to the universities.

The voting majority of the following discretely presented component unit’s board members are appointed by the State and the State is able to impose its will on the organization by its ability to modify or approve the budget of the entity.

Greater New Orleans Expressway Commission, P.O. Box 7656, Metairie, LA 70010, was created to construct, operate, and maintain the Greater New Orleans Expressway. The fiscal year end of the commission is October 31.

The voting majority of the following discretely presented component units’ board members are appointed by the State and the State is able to impose its will on the organizations by its ability to remove board members at will.

Louisiana State Board of Cosmetology, 11622 Sunbelt Court, Baton Rouge, LA 70809, regulates and licenses members of the Cosmetology industry to maintain public health and welfare standards set by the State of Louisiana.

Louisiana Motor Vehicle Commission, 3519 12th Street, Metairie, LA 70002-3427, regulates all areas of the new car industry, including motor vehicle sales finance companies in Louisiana.

Louisiana State Board of Private Security Examiners, 15703 Old Hammond Hwy., Baton Rouge, LA 70816, regulates the contract security guard industry.

Louisiana Stadium and Exposition District, 1500 Girod Street, New Orleans, LA 70113, is responsible for financing and operating an enclosed covered stadium, as well as other related facilities and structures for holding sporting events, athletic contests, exhibitions, and other events of public interest.

Road Home Corporation, doing business as Louisiana Land Trust, 11100 Mead Road, Baton Rouge, LA 70816, was created for the acquisition, disposition, purchase, renovation, leasing, or expansion of housing stock to help Louisiana residents displaced by hurricanes Katrina or Rita to get back into a home or apartment as quickly and fairly as possible.

Sabine River Authority of Louisiana, 15091 Texas Highway, Many, LA 71449-5718, is charged with the development of Toledo Bend resources within the State.

Ascension-St. James Airport and Transportation Authority, 6255 Airport Industrial Blvd., Gonzales, LA 70737, was established for the purpose of acquiring, constructing, maintaining and operating Louisiana Regional Airport.

Levee Districts provide services necessary to ensure adequate drainage control and to protect lands within their respective districts from damage by flood. They include the following:

o Atchafalaya Basin Levee District, P.O. Box 170, Port Allen, LA 70767o Bossier Levee District, P.O. Box 8279, Bossier City, LA 71113o Bunches Bend Protection District, 318 Morgan Street, Lake Providence, LA 71254; the district has a December 31

fiscal year end. o Caddo Levee District, P.O. Box 78282, Shreveport, LA 71137-8282o Fifth Louisiana Levee District, 102 Burnside Drive, Tallulah, LA 71282o Grand Isle Independent Levee District, P.O. Box 757, Grand Isle, LA 70358o Iberia Parish Levee, Hurricane and Conservation District, 300 Iberia Street, Ste. 410, New Iberia, LA 70560-4543 –

Ceased operations as of February 15, 2018o Lafitte Area Independent Levee District, 2654 Jean Lafitte Blvd., Lafitte, LA 70067o Lafourche Basin Levee District, P.O. Box 670, Vacherie, LA 70090; the district has a December 31 fiscal year end.o Natchitoches Levee and Drainage District, P.O. Box 1036, Natchitoches, LA 71458o Nineteenth Louisiana Levee District, P.O. Box 267, Colfax, LA 71417

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o North Lafourche Conservation, Levee and Drainage District, P.O. Box 309, Thibodaux, LA 70302. The district has a December 31 fiscal year end.

o Pontchartrain Levee District, P.O. Box 426, Lutcher, LA 70071o Red River, Atchafalaya, and Bayou Boeuf Levee District, 10 Calvert Dr., Alexandria, LA 71303-3195o Red River Levee and Drainage District, P.O. Box 433, Coushatta, LA 71019o South Lafourche Levee District, P.O. Box 426, Galliano, LA 70354o Tensas Basin Levee District, P.O. Box 68, Rayville, LA 71269

The voting majority of the following discretely presented component units’ board members are appointed by the State and the State is able to impose its will on the organizations by its ability to modify or approve rate or fee changes affecting the component units’ revenue.

Louisiana Utilities Restoration Corporation, P.O. Box 91154, Baton Rouge, LA 70802-9154, serves to finance utility system restoration costs.

State Plumbing Board of Louisiana, 11304 Cloverland Avenue, Baton Rouge, LA 70809, regulates the plumbing industry within the State.

The voting majority of the following discretely presented component units’ board members are appointed by the State and the State is able to impose its will on the organizations by veto, overruling or modifying decisions of the organizations’ governing board.

Bayou D’Arbonne Lake Watershed District, P.O. Box 696, Farmerville, LA 71241. The district has a December 31 fiscal year end.

Louisiana International Deep Water Gulf Transfer Terminal Authority, P.O. Box 82152, Baton Rouge, LA 70884.

The voting majority of the following discretely presented component units’ board members are appointed by the State and the State is able to impose its will on the organizations by its ability to appoint, hire, or dismiss employees or management of the component unit:

Louisiana Egg Commission, 5825 Florida Blvd, Suite 4004, Baton Rouge, LA 70806, strives to educate consumers of all ages on the nutritional value of egg and egg products. The Commission also approves and issues licenses to entities engaged in egg production and wholesale.

Louisiana Lottery Corporation, 555 Laurel Street, Baton Rouge, LA 70801, a nonprofit corporation, conducts and administers the State lottery to ensure the integrity of the lottery and maintain the dignity of the State and the general welfare of its people. The board of directors consists of nine members appointed by the Governor.

Three public employee retirement systems meet the criteria for inclusion as discretely presented component units. Although, the primary government does not appoint a voting majority of the entities’ boards, the entities are fiscally dependent and impose a financial burden on the primary government. These entities are fiscally dependent on the primary government because the primary government has the ability to establish and modify the criteria for determining participating employer and employee contributions rates through legislative action. In addition, these entities impose a significant financial burden on the primary government because the primary government is required by Article X, Section 29(B) of the Louisiana Constitution of 1974 to guarantee benefits payable to retirees of these entities:

Louisiana School Employees’ Retirement System, P.O. Box 44516, Baton Rouge, LA 70804-4516, was established in 1947 for the benefit of non-instructional personnel of the Louisiana public school system.

Louisiana State Employees’ Retirement System, P.O. Box 44213, Baton Rouge, LA 70804-4213, was established in 1947 to benefit all State employees with certain statutory exclusions.

Teachers’ Retirement System of Louisiana, P.O. Box 94123, Baton Rouge, LA 70804-9123, was established in 1936 for the benefit of public school teachers.

Although the State does not appoint a voting majority of the board for the entities listed below, the entities are fiscally dependent on the State since the State approves their budgets. Also, a financial benefit/burden exists between the State and the component units since the State is legally entitled to or can otherwise access the entities’ resources.

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Louisiana Economic Development Corporation, 1051 North Third Street, Baton Rouge, LA 70802, was established to serve as the single review board and administrator of the Department of Economic Development’s financial assistance programs, such as loan guarantees and venture capital for small and medium-sized businesses.

Natchitoches Historic District Development Commission, 781 Front Street, Natchitoches, LA 71457, created for the purpose of the planning and development of the Natchitoches Historic District, a national landmark.

The voting majority of the following discretely presented component unit’s board members are appointed by the State and the State is obligated in some manner for the debt of the component unit.

Greater Baton Rouge Port Commission, P.O. Box 380, Port Allen, LA 70767-0380, regulates commerce and traffic within the port area. The fiscal year end of the port commission is December 31.

The voting majority of the following discretely presented component units’ board members are appointed by the State and the State is legally entitled to or can otherwise access the component units’ resources.

Health Education Authority of Louisiana (HEAL), 300 LaSalle Street, Ste. B, New Orleans, LA 70112, was created to provide affordable capital financing, through the issuance of tax-exempt bonds, for projects of public and private institutions and organizations related to patient care, health science education and biomedical research, as well as, organizations providing facilities and/or services deemed appropriate by HEAL to locate and/or operate in a functional geographic relationship with the geographic area.

The Louisiana Housing Corporation (LHC) is a discretely presented component unit whose board members are appointed by the State and the State has a financial benefit/burden relationship with the corporation. LHC, 2415 Quail Drive, Baton Rouge, LA 70808, is responsible for managing the State’s housing programs, most of which focus on providing affordable housing for persons with low and moderate incomes.

Louisiana Public Facilities Authority, 2237 S. Acadian Thruway, Suite 650, Baton Rouge, LA 70808, is a public trust authorized to issue obligations and provide funds to finance projects and programs in the best interest of the citizens of Louisiana. The authority has a December 31 fiscal year end.

Louisiana State Board of Private Investigator Examiners, 7414 Perkins Road, Suite 120, Baton Rouge, LA 70808, regulates and licenses persons and businesses providing private investigative services.

Due to the nature and significance of the relationship between the following entities and the State, the financial statements would be misleading if they were excluded.

Acadiana Area Human Services District, 302 Dulles Drive, Lafayette, LA 70506 was established to direct the operation and management of community-based programs and services relative to mental health, developmental disabilities, and addictive disorder services for the parishes of Acadia, Evangeline, Iberia, Lafayette, St. Landry, St. Martin, and Vermillion parishes.

Capital Area Human Services District, 4615 Government Street, Building 2, Baton Rouge, LA 70806, was established to direct the operation of community-based programs and services relative to public health, mental health, developmental disabilities, and addictive disorder services for the parishes of Ascension, East Baton Rouge, East Feliciana, Iberville, Pointe Coupee, West Baton Rouge, and West Feliciana.

Central Louisiana Human Services District, P.O. Box 219, Evergreen, LA 71333, was created with local accountability and management of behavioral health and developmental disabilities services as well as any public health or other services contracted to the district by the Louisiana Department of Health.

Florida Parishes Human Services Authority, 835 Pride Drive, Ste. B, Hammond, LA 70401, was established to direct the operation and management of mental health, developmental disabilities, and addictive disorders services for the residents of Livingston, St. Helena, St. Tammany, Tangipahoa, and Washington parishes.

Foundation for Excellence in Louisiana Public Broadcasting, 7733 Perkins Road, Baton Rouge, LA 70810 was established to support the Louisiana Educational Television Authority, the state agency charged with promoting public and educational television in Louisiana. The Foundation provides an endowment to support public television in Louisiana and may serve as a “repository” for funds to be utilized for the promotion, development, enhancement and assistance of public television in Louisiana.

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Imperial Calcasieu Human Services Authority, One Lakeshore Drive, Suite 2000, Lake Charles, LA 70629, was created with local accountability and management to provide behavioral health and developmental disabilities services to the parishes of Allen, Beauregard, Calcasieu, Cameron, and Jefferson Davis.

Jefferson Parish Human Services Authority, 3616 S. I-10 Service Road, West, Suite 200 Metairie, LA 70001, was established to provide administration, management, and operation of mental health, developmental disabilities, and addictive disorders services for the residents of Jefferson Parish.

Louisiana Beef Industry Council, 2251 Drusilla Lane, Suite B, Baton Rouge Louisiana 70809, was established to coordinate the fulfillment of the economic, political and social needs of the Louisiana cattle producers.

Louisiana Cancer Research Center, 1700 Tulane Avenue, Suite 1000, New Orleans, LA 70112, conducts research and promotes education in the diagnosis, detection, and treatment of cancer.

Louisiana Citizens Property Insurance Corporation, 1 Galleria Blvd., Suite 720, Metairie, LA 70001, is a nonprofit organization created to provide insurance plans to residential and commercial property applicants who are unable to procure insurance through the voluntary market. Louisiana Citizens Property Insurance has a December 31 fiscal year end.

Metropolitan Human Services District, 3100 General De Gaulle Drive, New Orleans, LA 70114, was established to direct the operation and management of mental health, developmental disabilities, and addictive disorders services for the residents of Orleans, St. Bernard, and Plaquemines parishes.

Northeast Delta Human Services Authority, 2513 Ferrand Street, Monroe, LA 71201, was established to direct the operation and management of community-based programs and services relative to mental health, developmental disabilities, and addictive disorder services for the parishes of Caldwell, East Carroll, Franklin, Jackson, Lincoln, Madison, Morehouse, Ouachita, Richland, Tensas, Union, and West Carroll.

Northwest Louisiana Human Services District, 1310 North Hearne Avenue, Shreveport LA 71107, was established to direct the operation and management of mental health, developmental disabilities, and addictive disorders services for the parishes of Bienville, Bossier, Caddo, Claiborne, DeSoto, Natchitoches, Sabine, Red River, and Webster.

South Central Louisiana Human Services Authority, 521 Legion Avenue, Houma, LA 70364, was established to direct the operation and management of community-based programs and services relative to mental health, developmental disabilities, and substance abuse services for the residents of Assumption, Lafourche, St. Charles, St. James, St. John the Baptist, St. Mary, and Terrebonne parishes.

Southeast Louisiana Flood Protection Authority-East, 6001 Stars and Stripes Blvd., Suite 225, New Orleans, LA 70126, and Southeast Louisiana Flood Protection Authority-West, 7001 River Road, Marrero, LA 70072, were created to provide regional coordination of flood protection. These two authorities are reported together as the Southeast Louisiana Flood Protection Authority-East and West (SLFPA-East and West). Entities under SLFPA-East and West for fiscal year 2018 include the Board of Commissioners-SLFPA-East, Board of Commissioners-SLFPA-West, Algiers Levee District, East Jefferson Levee District, Lake Borgne Basin Levee District, Orleans Levee District, and West Jefferson Levee District.

Relay Administration Board, P.O. Box 91154, Baton Rouge, LA 70821-9154, is charged with oversight of telephone relay services for the State, insuring equal access to telecommunications services for all hearing and speech impaired citizens. The board has a December 31 fiscal year end.

Related Organizations

Related organizations are those entities for which a primary government’s accountability does not extend beyond appointing a voting majority of the board. The State is not financially accountable for the following related organizations, and they are not reported in the accompanying basic financial statements.

Ambulance Service District Commission Amite River Basin Drainage Water and Conservation District Associated Branch Pilots of the Port of Lake Charles Associated Branch Pilots of the Port of New Orleans Baton Rouge North Economic Development District Bayou Desiard Restoration Commission

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Bayou Lafourche Fresh Water District Black River Lake Recreation and Water Conservation District Capital Area Groundwater Conservation District Castor Creek Reservoir District Crescent River Port Pilots’ Association Foundation for Louisiana Fourteenth and Sixteenth Wards Neighborhood Development District Gentilly Taxing District Glen Oaks Crime Prevention and Improvement District Greater Ouachita Port Commission John K. Kelly Grand Bayou Reservoir District Kenner Naval Museum Commission Lake Vista Crime Prevention District Louisiana Naval War Memorial Commission Louisiana Used Motor Vehicle Commission New Orleans and Baton Rouge Steamship Pilots’ Association New Orleans Regional Business Park North Lafayette Redevelopment Authority Parish Hospital Service District – East Baton Rouge Parish & West Feliciana Parish Parish Hospital Service District – Rapides Parish Patient’s Compensation Fund Oversight Board Poverty Point Reservoir District River Region Cancer Screening and Early Detection District Seventh Ward Neighborhood Development District South Tangipahoa Parish Port Commission Southwest Acadiana Parishes Public Housing Rehabilitation District Tangipahoa Parish Juvenile Justice District Terrebonne Levee and Conservation District Twelfth and Thirteenth Wards Neighborhood Development District Washington Parish Reservoir District

Joint Ventures

A joint venture is a legal entity or other organization that results from a contractual arrangement and is owned, operated, or governed by two or more participants as a separate and specific activity subject to joint control, in which the participants retain (1) an ongoing financial interest or (2) an ongoing financial responsibility. The purposes of a joint venture are to pool resources and share the costs, risks, and rewards of providing goods or services to venture participants directly, or for the benefit of the general public or specific service recipients.

The Sabine River Authority of Louisiana, 15091 Texas Highway, Many, LA 71449-5718, participates equally with the Sabine River Authority of Texas in the Sabine River Compact Administration (Compact) and through the Sabine River Authority, with the Sabine River Authority of Texas, 450 Spur 135, Burkeville, TX 75932, in the Toledo Bend Joint Operation (Joint Operation). Separate financial statements are prepared for the operations of both the Compact and the Joint Operation and may be obtained by contacting the entities at the addresses above. The Sabine River Authority of Louisiana’s share of the joint ventures is reported as a discrete component unit in the accompanying basic financial statements. The Compact was created under authority granted by an act of the Congress of the United States to provide equitable apportionment of the waters of the Sabine River and its tributaries. A five-member board composed of two members appointed by the governors of each state and one non-voting, ex-officio member appointed by the President of the United States administer the Compact. The Joint Operation was established by joint resolution of the Sabine River Authorities of Texas and Louisiana for the construction and operation of the Toledo Bend Dam and Reservoir project administered by a board composed of three members appointed by the Texas Authority and three members appointed by the Louisiana Authority. Costs of the Compact not paid by the federal government are to be paid equally by the two States, which share equally in the costs of the Joint Operation. Each State owns an undivided one-half share of all lands acquired for the project, and each State owns and is entitled to 50% of the water produced and 50% of the power generated by the Joint Operation and may sell, use, or otherwise dispose of its share without consent and permission of the other Authority.

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Jointly Governed Organizations

A jointly governed organization is one governed by representatives from each of the governments creating it and one in which the participants do not retain an ongoing financial interest or financial burden; therefore, they are not reported in the accompanying basic financial statements. These organizations include the Gulf States Marine Fisheries Commission, Southern Rail Commission, Interstate Commission for Adult Offender Supervision, Interstate Insurance Product Regulation Compact and Commission, Interstate Commission for Juveniles, Interstate Commission on Educational Opportunity for Military Children, Physical Therapy Compact Commission, and Interstate Commission of Nurse Licensure Compact Administrators.

B. BASIS OF PRESENTATION, MEASUREMENT FOCUS AND BASIS OF ACCOUNTING

The basic financial statements include the government-wide financial statements, fund financial statements, and notes to the basic financial statements. The government-wide financial statements consist of a governmental activities column and a business-type activities column. Together these two columns comprise the financial information of the primary government. As previously mentioned, aggregate discretely presented component unit information is presented separately to emphasize that these entities are legally separate from the primary government. Fund financial statements are presented to provide additional detail supporting the information presented in the government-wide financial statements. The fund financial statements consist of financial statements for governmental funds, proprietary funds (enterprise and internal service funds), and fiduciary funds, even though the latter are excluded in the government-wide financial statements.


While separate government-wide and fund financial statements are presented, they are interrelated. The governmental activities column incorporates data from governmental funds and internal service funds, while business-type activities incorporate data from the State’s enterprise funds. The government-wide financial statements are presented using the economic resources measurement focus and the accrual basis of accounting, similar to a private company. This measurement focus and basis of accounting assists users in assessing the mid- and long-term effect of decisions on the State’s financial position and financial condition.

The government-wide financial statements consist of a statement of net position and a statement of activities. The statement of net position presents all economic resources, such as State-owned capital assets that facilitate the delivery of government services, as well as claims on economic resources in the future, such as long-term debt and liabilities for pensions.

The statement of activities details the changes in net position from the prior year. Revenues are recognized when earned and expenses are recognized when liabilities are incurred, regardless of the timing of the related cash flows. The statement of activities reports revenues and expenses in a format that allows the user to focus on the extent to which each function is able to generate program revenues, such as charges for services and grants, to cover expenses. In other words, the statement of activities provides information to users on how self-sustaining each governmental function is and the extent to which each function must rely on general revenues such as taxes to cover expenses.

Fund Financial Statements

The fund financial statements provide information about the State’s funds, including its fiduciary funds and blended component units. Separate statements for each fund category— governmental, proprietary, and fiduciary—are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, which are each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. Major funds are those governmental and enterprise funds with revenues, expenditures/expenses, assets plus deferred outflows of resources, or liabilities plus deferred inflows of resources that are at least 10 percent of the total for their fund type (governmental or enterprise) and at least five percent of the corresponding element total for all governmental and enterprise funds combined.

The governmental fund financial statements are presented using the current financial resources measurement focus and the modified accrual basis of accounting. This measurement focus and basis of accounting assists users in assessing the short-term effect of decisions on the State’s financial position and financial condition.

The governmental fund financial statements consist of a balance sheet and a statement of revenues, expenditures, and changes in fund balances. The balance only includes current financial resources and claims on those resources. Therefore, the economic resources and claims on those resources presented on the government-wide statement of net positon are absent from the governmental fund balance sheet. On the statement of revenues, expenditures, and changes in fund balances, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period, generally considered 45 days after the end of the fiscal year, except for federal grants, which generally are considered available for 12 months after the end of the fiscal year. Expenditures are recognized in the accounting period in which the fund liability is incurred, if measurable.

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The governmental fund balance sheet includes a reconciliation of the government-wide statements to the governmental fund financial statements. This reconciliation is necessary to bring the financial statements from the current financial resources measurement focus and modified accrual basis of accounting to the economic resources measurement focus and full accrual basis of accounting. Major items included in the reconciliation are capital assets, inventories and prepayments, long-term debt, accrued interest, net position of internal service funds, and deferred inflows/outflows of resources, which are shown on the government-wide but not the governmental fund statements.

The proprietary fund statements include a statement of net position; a statement of revenues, expenses, and changes in net position; and a statement of cash flows. The proprietary fund statements are prepared using the economic resources measurement focus and the accrual basis of accounting, similar to private companies. The proprietary fund financial statements have a column for each major enterprise fund, one that combines all the nonmajor enterprise funds, and one column that reports all internal service funds. The fiduciary fund statements include a statement of net position and a statement of changes in net position, with one column for each of the four types of fiduciary funds. The statements are prepared using the economic resources measurement focus and the accrual basis of accounting, except for agency fund statements which use the accrual basis but do not have a measurement focus, as they report only assets and liabilities.

Governmental Funds

Governmental funds are used to account for activities primarily supported by taxes, grants and similar revenues. The major governmental funds of the State are the General Fund, the Bond Security and Redemption Fund, Capital Outlay Escrow Fund, and the Louisiana Education Quality Trust Fund.

General Fund - The General Fund is the principal operating fund of the State, and was established administratively to provide for the distribution of funds appropriated by the state legislature for the ordinary expenses of state government. Transactions related to resources that are not accounted for in other funds are recorded in the General Fund. Revenues include the direct deposit of federal grants and the transfer of state revenues from the Bond Security and Redemption Fund after debt requirements and obligations to other funds are met.

Bond Security and Redemption Fund - This fund is used to provide for the collection of all money deposited into the State Treasury except federal funds, donations, or other forms of assistance when the terms and conditions of the related agreements require otherwise. Each fiscal year, an amount is allocated from this fund sufficient to pay all obligations secured by the full faith and credit of the State that are due and payable within the current fiscal year, including debt principal, interest, premiums, and sinking or reserve funds. Except as otherwise provided by law, money remaining in the fund is credited to the General Fund at year-end.

Louisiana Education Quality Trust Fund - Once requirements of the Bond Security and Redemption Fund have been met, certain funds received from the federal government attributable to mineral production or leases on the outer continental shelf are deposited by the State Treasurer into this fund. The fund consists of nonspendable invested trust principal and an expendable portion to be used for various educational purposes.

Capital Outlay Escrow Fund - This fund provides for the capital outlay expenditures of state government, state institutions, and other public entities as appropriated by the legislature. Sources of funding include federal revenues, transfers from the General Fund and Transportation Trust Fund, interest earnings, and contributions from other sources.

Proprietary Funds

Proprietary funds are used to account for activities that receive significant support from fees and user charges. The State has two types of proprietary funds:

Internal service funds account for the provision of services, primarily given by one department to another, on a cost reimbursement basis. The activities accounted for in internal service funds include copy and mail services, aircraft services, telecommunications, and financing and acquiring public facilities for lease to the State.

Enterprise funds account for the activities for which fees are charged to external users for goods or services.

The State’s major enterprise funds are the Unemployment Trust Fund and the Louisiana Community and Technical College System.

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Unemployment Trust Fund - This fund accounts primarily for the unemployment tax payments from employers to be used for the payment of unemployment benefits to eligible claimants.

Board of Supervisors of the Louisiana Community and Technical College System - This entity provides strategic management and support for Louisiana’s 13 comprehensive community and technical colleges.

Fiduciary Funds

Fiduciary funds are used to account for assets held by the State in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and/or other funds, and cannot be used to address activities or obligations of the government. These funds are presented in the fund financial statements, but are not incorporated into the government-wide statements. Fiduciary Funds are not subject to the major/nonmajor fund classification. There are four types of fiduciary funds:

Pension trust funds account for resources held in trust for members and beneficiaries of employee pension plans.

Investment trust funds account for the portion of the government’s investment pools that belong to others.

Private-purpose trust funds report all other trust arrangements benefiting those outside the government.

Agency funds contain resources held by the government in a temporary, purely custodial capacity for others (excluding agencies of the State) and do not involve measurement of results of operations.

C. ASSETS, LIABILITIES, DEFERRED INFLOWS, DEFERRED OUTFLOWS, AND NET POSITION OR FUND BALANCES

Cash and Investments

The State Treasurer pools those cash resources for which he is responsible and invests them accordingly. For purposes of the financial statements, including the Statement of Cash Flows, the State considers all highly liquid investments (including restricted investments) to be cash equivalents. The investments held by the proprietary funds may be classified as current or noncurrent depending on their maturity. Investments with a maturity date of 12 months or less may be classified as current.

Investments are reported at fair value, with some exceptions, in accordance with GASB Statement No. 72, Fair Value Measurement and Application, which was implemented for the fiscal year ended June 30, 2016. GASB 72 requires governments to use valuation techniques in assessing fair value and establishes a hierarchy of three levels used to categorize the inputs that are used to measure fair value. All cash and investment earnings are recorded in the General Fund unless statutorily dedicated to specific funds. The fair value hierarchy and valuation techniques for all investments reported at fair value as well as cash and investment limitations are disclosed in Note 2 (Deposits and Investments).

The investments of the pension trust funds are reported at fair value, with exceptions, in accordance with GASB 72. Short-term investments are reported at market value when published prices are available, or at cost, which approximates fair value. Securities traded on a national or international exchange are valued at the last reported sales price at the current exchange rate. Investments that have no readily ascertainable fair value such as private equity and emerging market funds are reported as net asset value in accordance with GASB 72.

Internal Balances

Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” All internal balances are eliminated in the total primary government column.

Inventories and Prepaid Items

Inventories consisting predominately of materials and supplies held for consumption, merchandise and livestock held for resale, and expendable medical supplies are valued primarily using the average cost method. The consumption method is used for financial reporting. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.

Restricted Assets

Restricted assets represent primarily cash, investments, and receivables held separately and restricted according to applicable bond indenture agreements.

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Capital Assets

Capital assets, which include property, plant, equipment, and infrastructure assets, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements at historical cost. Infrastructure is reported retroactively to 1960. Capital assets are recorded as expenditures generally in the Capital Outlay Escrow Fund at the fund level and capitalized at the government-wide level; capital assets of enterprise and internal service funds are reported in the respective funds. The costs of normal maintenance and repairs that do not add to the value of the assets or materially extend the life of the assets are not capitalized. For reporting purposes, the State has defined capital assets as follows:

Land is an inexhaustible asset with no capitalization threshold and an unlimited useful life; therefore, it is not depreciated.

Movable property consists of assets that are not fixed or stationary in nature with an initial, individual cost of at least $5,000. The straight-line method of depreciation is used, which divides the historical cost by the estimated useful life of the asset, generally 5 to 10 years.

Buildings are permanent structures erected above ground, while improvements are major repairs, renovations, or additions that increase the future service potential of the asset. Leasehold improvements are improvements made by the lessee to leased property. The capitalization threshold for buildings and improvements is $100,000. They are depreciated principally using the straight-line method with an estimated useful life typically of 40 years for structures and improvements and 20 years for depreciable land improvements. Leasehold improvements are depreciated using the straight-line method with an estimated useful life depending on the term of the lease. Construction-in-progress is not depreciated.

Infrastructure assets are roads, bridges, tunnels, drainage systems, water and sewer systems, dams, and lighting systems. Infrastructure has a capitalization threshold of $3,000,000 and is depreciated using the straight-line method with an estimated useful life of 40 years.

Purchased computer software has a capitalization threshold of $1,000,000 and is depreciated using the straight-line method over an estimated useful life of 3 years.

Internally generated software has a capitalization threshold of $1,000,000 and is depreciated using the straight-line method over an estimated useful life determined by its value. Internally generated software valued at $10,000,000 or less is depreciated over 7 years and internally generated software valued over $10,000,000 is depreciated over 10 years.

Historical treasures and works of art are items held for public exhibition, educational purposes, or research in enhancement of public service instead of financial gain, and therefore are not capitalized or depreciated.

Donated capital assets are valued at acquisition value at the time of donation.

Hospitals and medical units within Louisiana State University Health Sciences Center are subject to federal cost reporting requirements and use capitalization and depreciation policies of the Centers for Medicare and Medicaid Services (CMS) to ensure compliance with federal regulations. These capitalization policies include a threshold of $5,000 for all assets, depreciable lives greater than 40 years on some assets, and recognition of a half year of depreciation in the year of acquisition and final year of useful life.

Compensated Absences

Classified and unclassified state employees earn annual leave and sick leave at various rates depending on the number of years of service. The amount of annual and sick leave that may be accrued by each employee is unlimited. An employee is compensated for up to 300 hours of unused annual leave at the employee's hourly rate of pay at the time of termination. For employees under the supervision of the Board of Elementary and Secondary Education or other boards of control of publicly supported educational institutions, Louisiana Revised Statute (LRS) 17:425 provides for payment of up to 25 days of unused sick leave at the time of retirement, or death if prior to retirement.

Upon a member’s retirement, annual leave balances in excess of 300 hours and the number of hours of unused sick leave are converted into years or fractions of years and added to the number of years of service earned by the retiree. Unused annual and sick leave is applied to the number of years of service only for computing the rate of pay due to the retiree and does not count toward the number of years necessary for retirement. Act 343 of 1993 allows members retiring after August 15, 1993, to elect to receive an actuarially determined lump-sum payment for unused leave that would have been converted for retirement credit.

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An employee who is required to work overtime may, at the option of the appointing authority, be credited with compensatory leave for the hours required to work. Certain employees earn this leave at time and one-half, whereas others earn on an hour-for-hour basis. Generally, employees in positions at or below a certain pay level may be paid upon separation or transfer, based on the employee’s final regular rate of pay. Compensatory leave for all other employees is canceled upon separation or transfers from the department in which it was earned.

Revenues and Expenses

The government-wide statement of activities distinguishes between revenues that are generated by each function (program revenues) and those that are a result of the State’s general revenue-collecting authority (general revenues). Program revenues include amounts charged to users of state services as well as operating and capital grants that are restricted to specific functions and programs. Operating grants include operating-specific and discretionary (either operating or capital) grants, while capital grants include only capital-specific grants. General revenues include taxes, gaming, and investment revenues.

Proprietary funds distinguish between operating and nonoperating revenues and expenses. Operating revenues result from the fees charged to users of the fund’s principal operation, such as the provision of goods or services. All other revenues are considered nonoperating revenues, even if the resources received were used to fund the fund’s principal operation. Operating expenses arise from the provision of the fund’s principal operation. All other expenses are classified as nonoperating expenses.

Deferred Outflows/Inflows of Resources

Deferred outflows of resources represent a consumption of net position that applies to a future period and are not recognized as an outflow of resources (expense or expenditure) until then. Deferred inflows of resources represent an acquisition of net position that applies to a future period and will not be recognized as an inflow of resources (revenue) until that time. The State has the following items that are reported as deferred inflows or outflows of resources: the accumulated increase/decrease in the fair value of hedging derivatives, fines and penalties received in advance of meeting time requirements, deferred amounts on debt refunding, deferred inflows/outflows of resources related to postemployment benefits, deferred inflows/outflows of resources related to pensions, and unavailable revenue. Unavailable revenue arises only under a modified accrual basis of accounting, so it is reported only in the governmental funds balance sheet.

Fund Balance Classifications and Net Position

Fund balances are reported under the following fund balance classifications:

Nonspendable – includes amounts that cannot be spent because they are not in spendable form (e.g., inventories) or are legally or contractually required to be maintained intact (e.g., corpus of a permanent fund).

Restricted – includes amounts that have constraints placed on the use of the resources either by an external party or by imposition of law through constitutional provisions or enabling legislation.

Committed – includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the State Legislature, the State’s highest level of decision making authority. Those committed amounts cannot be used for any other purpose unless the state legislature removes or changes the specified use by taking the same type of action employed to commit those amounts such as the passage of a new law.

Assigned – includes amounts that are constrained by the state’s intent to be used for specific purposes, but are neither restricted nor committed. Through acts of the State Legislature, the Joint Legislative Committee on the Budget and the Office of Planning and Budget, under the authority of the Commissioner of Administration, have been delegated the authority to assign amounts to be used for specific purposes.

Unassigned – includes amounts that have not been assigned to other funds and that have not been restricted, committed, or assigned to specific purposes within the General Fund.

The State has a general policy to first use restricted resources for expenditures incurred for which both restricted and unrestricted (committed, assigned, and unassigned) resources are available. When expenditures are incurred for which only unrestricted resources are available, the general policy of the State is to use committed resources first, followed by assigned, and then unassigned.

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Net position is equal to assets, plus deferred outflows of resources, less liabilities, less deferred inflows of resources. Net position is segregated into three categories on the government-wide statement of net position: net investment in capital assets; restricted; and unrestricted. Net investment in capital assets consists of capital assets (net of accumulated depreciation) reduced by the outstanding balances of bonds, mortgages, notes, or other debt attributable to the acquisition, construction, or improvement of such assets. Restricted net position represents the portion of net position that consists of restricted assets reduced by liabilities and deferred inflows related to those assets. The State first uses restricted assets for expenses incurred when both restricted and unrestricted net position are available for use.

D. BUDGETS AND BUDGETARY ACCOUNTING

LRS 39:33 requires that on or before November 15, the head of each spending agency submit to the Governor, the Joint Legislative Committee on the Budget, and the Legislative Fiscal Office an estimate of the financial requirements and receipts of the budget unit for the upcoming fiscal year. The Governor is required to prepare an executive budget and transmit a copy to each member of the Legislature on the first day of the regular session (LRS 39:37). The budget is enacted into law by the Legislature and sent to the Governor for signature. Article VII, Section 10 of the Louisiana Constitution of 1974 prohibits the passage of an unbalanced budget. The Governor may veto any line item appropriation, subject to legislative override.

LRS 39:73 authorizes the transfer of funds between programs within a budget unit. The Commissioner of Administration may approve such a transfer when in aggregate the transfers are not more than 1% of the total appropriation to the budget unit and sufficient evidence is presented. The Commissioner, with the approval of the Joint Legislative Committee on the Budget, may approve the transfer of funds between programs within the budget unit when in aggregate the transfers do not exceed 25% of the total appropriation to the budget unit and sufficient evidence is presented. These and other requests for transfers are to be submitted by the budget unit to the Legislative Fiscal Office.

According to LRS 39:111, the Governor is required to submit to the Legislature, no later than the eighth day of the regular session, a proposed five-year capital outlay program. The Legislature enacts into law a bill incorporating the first year of the five-year capital outlay program. The Legislature adopts a concurrent resolution for the remaining four years of the five-year capital outlay program, itemizing the capital projects and the amount and source of funding for each of the subsequent four years.

According to LRS 39:77, in no event shall any budget unit commit to an expenditure in excess of the unencumbered balance of the allotment to which the resulting expenditure would be charged, without prior approval of the Interim Emergency Board and two-thirds of the Legislature. The Revenue Estimating Conference has been established to provide an official estimate of anticipated state revenues for each fiscal year. Appropriations by the Legislature from the state General Fund and dedicated funds for any fiscal year shall not exceed the official forecast in effect at the time the appropriations are made. The Governor may direct the Commissioner of Administration to reduce or disapprove warrants in order to prevent a budgetary deficit.

In accordance with LRS 39:82(A), agencies are allowed 45 days for closing out prior year activities. This statute limits the use of appropriation balances after the June 30 close to true liabilities, delineates those items eligible for roll forward treatment, and establishes a 45-day period to request such carry-forwards. After that time, all appropriations lapse except permanent capital outlay appropriations that remain active until the projects are complete. Additionally, upon approval by the Commissioner of Administration, any federal funds and any state funds appropriated during a fiscal year specifically for matching federal grants may be carried forward into the upcoming year's appropriation. Re-established appropriations for enterprise and internal service funds are allowed to retain any surplus resulting from prior year operations. These and all monies from self-generated revenues are available for expenditure in the amounts appropriated. The Commissioner of Administration may approve increases from self-generated revenues, not exceeding in aggregate 5% of appropriated self-generated revenues. Only with the approval of the Division of Administration and the Joint Legislative Committee on the Budget will any larger increase in self-generated revenue over the amount appropriated be available to agencies for expenditure.

Annual operating appropriations of the State are adopted on a non-GAAP basis by individual budget unit, rather than by fund. As previously mentioned, expenditure levels are constrained based on budgetary basis revenue forecasts by the State’s Revenue Estimating Conference. Budgetary basis revenues are cash collections during the fiscal year and collections attributable to the fiscal year within 45 days after the end of the fiscal year. The budgetary basis differs from GAAP most significantly in regards to accounting for non-exchange transactions such as federal grants and derived tax revenues.

Governments are required to present the original, final, and actual budgetary basis of the General Fund and each individual major special revenue fund that has a legally adopted annual budget. The accompanying Required Supplementary Information includes notes and a schedule making this comparison for the General Fund. For fiscal year 2018, there are no major special revenue funds. Legally adopted budgets are not adopted for any fund. However, since most revenues that finance General Fund expenditures as well as the State’s general obligation debt service payments are accounted for in the Bond Security & Redemption Fund, a budgetary comparison schedule will be prepared and included as Supplementary Information.

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E. USE OF ESTIMATES

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

NOTE 2: DEPOSITS AND INVESTMENTS

A. DEPOSITS

Bank accounts, nonnegotiable certificates of deposit and money market deposit accounts, are included as deposits. In accordance with LRS 49:321, state depositing authorities shall require as security for deposit of state funds authorized bonds or other interest-bearing notes; authorized promissory notes, warrants, or certificates of indebtedness unmatured or payable on demand. Fair value, excluding interest, of such securities held by the depositing authority shall be equal to 100% of the amount on deposit to the credit of the depositing authority except that portion appropriately insured. Designated depositories may be granted a period not to exceed five days from the date of any deposit to post the necessary security.

The following chart presents bank deposit balances for the primary government and fiduciary funds as of June 30, 2018. Deposits are listed in terms of whether they are exposed to custodial credit risk, which is the risk that the state’s deposits may not be returned in the event of a bank failure. Deposits are exposed to custodial credit risk if they are either: a) uninsured and uncollateralized, b) uninsured and collateralized with securities held by the pledging financial institution, or c) uninsured and collateralized with securities held by the pledging financial institution’s trust department or agent but not in the name of the State.

Deposits Exposed to Custodial Credit Risk (Expressed in Thousands)

Uninsured andCollateralized

Uninsured and with SecuritiesCollateralized Held by Pledging Total Bankwith Securities Institution’s Trust Balances –

Uninsured and Held by Pledging

Dept. or Agent but AllUncollateralized Institution not in State’s Name Deposits

Primary Gov’t & Fiduciary: Cash $ 78,419 $ 15,294 $ 60,265 $ 1,039,904 Certificates of Deposit 290 189 1,133 192,439 Other 367 -- 111 16,166

Total Bank Balances $ 79,076 $ 15,483 $ 61,509 $ 1,248,509

B. INVESTMENTS - VALUATION

LRS 49:327 authorizes the State Treasurer to invest available monies in direct Treasury obligations, government agency obligations, corporate bonds, perfected repurchase agreements, and reverse repurchase agreements, time certificates of deposit in specified banks, savings accounts or shares of certain savings and loan associations and savings banks, or in share accounts and share certificate accounts of certain credit unions. Such securities shall not have weighted-average maturities in excess of five years from the purchase date, except monies invested from special funds (those not considered general funds) which shall not exceed 10 years from the date of purchase. Repurchase Agreements must be collateralized by the pledge of securities at 102%. Funds not on deposit in the State Treasury are authorized to be invested in time certificates of deposit of specified banks, in savings accounts or shares of specified savings and loan associations and savings banks, or in share accounts and share certificate accounts of specified credit unions. Funds determined to be available for investment for less than 30 days are authorized to be invested in direct United States Treasury obligations that mature in not more than 29 days after the date of purchase. These funds are also required to be fully insured or collateralized.

Because of limited maturity dates, availability of securities, and yield, perfected repurchase agreements are entered into for short-term management purposes. LRS 49:341 - 343 grants defined public entities the authority to invest bond proceeds and monies held in any fund established in connection with bonds in any direct obligation of, or obligation guaranteed by, the United States and in tax-exempt bonds until proceeds are required to be expended for the purpose of the issue.

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LRS 39:99 directs the State Treasurer to offer each local school board the opportunity to enter into contract with the State to have its share of tobacco settlement monies invested and managed on its behalf by the State Treasurer. The State Treasurer maintains these monies in a pooled investment known as the Louisiana Education Excellence Fund, an external investment pool that is not registered with the SEC as an investment company. The pool invests in Treasury obligations, corporate bonds, and other securities as prescribed by LRS 17:3803. The securities are valued at fair market value, which are updated at least weekly and as often as daily. The State Treasurer neither guarantees nor obtains any legally binding guarantee to support the values of the shares in the pool. Participant’s share of investments sold and redeemed in the pool is determined on a dollar basis and the earnings of the fund are credited back to the participants on a pro rata basis. As of June 30, 2018 the par value of the securities within the Louisiana Education Excellence Trust Fund is $25,518,736 and the fair market value is $25,329,289.

LRS 11:263 directs Louisiana's pension systems to invest in accordance with the prudent man rule. As used in this statute, the rule means that the systems ". . . act with the care, skill, prudence, and diligence under the circumstances prevailing that a prudent institutional investor acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims." Notwithstanding the prudent man rule, no governing authority of any system shall invest more than 55% of the total portfolio in equities. Pension systems are required to give weight to certain factors including, but not limited to the experience of the professionals who will manage each investment, the jurisdiction of the laws that govern each investment, and the risk of fluctuations in currency that may accompany each investment when making investment decisions. In addition, pension systems are further required to submit quarterly reports, as specified in the statute, to the House and Senate committees on retirement.

In February 2015, GASB issued Statement No. 72 (GASB 72), Fair Value Measurement and Application, designed to enhance the comparability of governmental financial statements by requiring fair value measurement for certain assets and liabilities using a consistent definition and accepted valuation techniques. GASB 72 amended the definitions of fair value and investments, provided guidance for determining a fair value measurement for assets and liabilities required to be reported at fair value, provided guidance for applying fair value to investments required to be reported at fair value, and provided for disclosures in addition to those already required by GASB Statements No. 3, 31, 40, and 53 for all investments measured at fair value.

GASB 72 redefined investments as securities or other assets that governments hold primarily for the purpose of income or profit having a present service capacity based solely on its ability to generate cash or to be sold to generate cash. According to GASB 72, the investment designation must be made when the asset is acquired and would remain over the life of the asset, even if the use of the asset changes over time. GASB 72 further redefined fair value as the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. By expanding how governments define investments, GASB 72 expands the scope of fair value reporting to include investments that were not previously reported at fair value.

In addition to expanding the definitions of fair value and investments, the standard provides requirements for the valuation and disclosure of assets and liabilities reported at fair value. Governments are to use valuation techniques that are appropriate and for which sufficient data is available to measure assets and liabilities at fair value. Valuation techniques should be applied consistently from one accounting period to the next and should maximize the use of relevant observable inputs and minimize the use of unobservable inputs. To help financial statement users better understand the quality of the inputs used in determining fair value, GASB 72 establishes a three-tier fair value hierarchy that prioritizes the inputs based on relative reliability. Level 1 inputs are quoted prices in active markets for identical assets or liabilities, Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for assets or liabilities, and Level 3 inputs are inputs that are unobservable and only used when relevant Level 1 or 2 inputs are unobservable such as nonbinding quotes on interest rate swaps that cannot be corroborated by observable market data.

GASB 72 requires disclosure of the fair value level and valuation technique for each type of asset or liability measured at fair value. GASB 72 requires that these disclosures be organized by type of asset or liability as opposed to reporting entity segment. Also, for investments in certain entities that calculate the use of net asset value per share or its equivalent as a measure of fair value, GASB 72 requires additional disclosures on any unfunded commitments and redemption terms.

The following chart presents the investments of the primary government and fiduciary funds at June 30, 2018. As required by GASB 72, investments reported at fair value, exceptions noted below, are disclosed by fair value hierarchy level.

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All Investments(Expressed in Thousands)

Total Value

Quoted Prices in Active

Markets for Identical Assets

(Level 1 Inputs)

Other Observable

Inputs (Level 2 Inputs)

Significant Unobservable

Inputs(Level 3 Inputs)

Investments by Fair Value LevelNegotiable Certificates of Deposit $252 $252U.S. Government Securities 3,798,764 784,683 $3,014,081U.S. Agency Obligations 1,628,364 265,082 1,363,282Commercial Paper 726,941 666,941 $60,000Short Term Investments 1,274,555 434,882 189,866 649,807Mortgages (Mortgage Backed Securities & Collateralized Mortgage Obligations) 106,170 106,170External Investment Pools 7,916 363 7,553Mutual Funds 1,736,900 1,454,325 282,575Municipal Bonds 490,126 2,114 488,012Corporate Bonds 2,245,133 105,022 2,024,164 115,947Other Bonds 2,117,831 222,419 1,797,128 98,284Equity Securities (Common & Preferred Stock) 16,465,184 15,369,788 210,111 885,285Real Estate 754,616 27,353 727,263Private Equity 4,785,376 24,649 4,760,727Alternative Investments 748,329 6,957 630,268 111,104Collateral Held Under Securities Lending 1,545,233 1,545,233

Total Investments by Fair Value Level $38,431,690 $18,697,889 $12,325,384 $7,408,417

Investments Measured at Net Asset ValueEmerging Market Funds $2,063,425Private Equity Funds 1,659,526Absolute Return Funds 777,849Risk Parity 784,834Real Estate 322,879Dimensional Funds 361,418Strategic Property Funds 472,886Core Property Funds 296,979

Total Investments at Net Asset Value $6,739,796

Investments Measured at Fair ValueCash in Investment Portfolios $251,158Collateral Held Under Securities Lending 3,427,982

Total Investments at Fair Value $3,679,140

Derivatives by Fair Value LevelPay Fixed Interest Rate Swaps $21,123 $21,123Financial Futures (16,993) ($16,993)Forward Foreign Exchange Contracts (14,438) 360 (14,798)Short Fixed Income and Written Options (408,033) (220) (407,813)Swaps (99) (99)

Total Derivatives by Fair Value Level ($418,440) ($16,853) ($401,587)

TOTAL INVESTMENTS AT FAIR VALUE $48,432,186 $18,681,036 $11,923,797 $7,408,417

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All Investments(Expressed in Thousands)

Total Value

Quoted Prices in Active

Markets for Identical Assets

(Level 1 Inputs)

Other Observable

Inputs (Level 2 Inputs)

Significant Unobservable

Inputs(Level 3 Inputs)

Investments Measured at Amortized CostNegotiable Certificates of Deposit $1,242Repurchase Agreements 107,313Money Market Mutual Funds 576,000U.S. Government Obligations 12,597U.S. Agency Obligations 1,383SEC Rule 2a7-Like External Investment Pools 70,739

Total Investments at Amortized Cost $769,274

Investments Measured at CostSynthetic Guaranteed Investment Contracts $509,753

Total Investments Measured at Cost $509,753

TOTAL ALL INVESTMENTS $49,711,213 $18,681,036 $11,923,797 $7,408,417

Primary Government

The State Treasury uses two vendors as custodians of securities, J.P. Morgan Chase and Bank of New York Mellon. Both custodians use Interactive Data as their primary securities data provider. In addition, they use Barclays, Pricing Direct, Reuters and Intercontinental Exchange as sources of pricing for securities not priced by Interactive Data.

Debt and equity securities classified in Level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities. Level 1 investments for the primary government include Mutual Funds, U.S. Government Securities, U.S. Agency Obligations, Municipal Bonds, Corporate Bonds, Common Stock, External Investment Pools and Negotiable Certificates of Deposit.

Debt and equity securities classified in Level 2 of the fair value hierarchy are valued using quoted prices in active markets for similar investments, matrix pricing techniques, cost pricing techniques, and market pricing techniques. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices. Level 2 investments for the primary government include Common & Preferred Stock, U.S. Government Securities & Agency Obligations, Municipal Bonds, Corporate Bonds, Other Bonds, Mutual Funds, External Investment Pools and Pay Fixed Interest Rate Swaps.

The Pay Fixed Interest Rate Swaps classified in Level 2 of the fair value hierarchy are valued using a nonperformance risk free valuation, mark-to-market, adjusted by a risk adjusted valuation that utilizes the relevant entity specific discounting curve. The risk adjusted valuation, which can also be referred to as the Income Approach, uses the discounted cash flow method to discount the amounts of market expected future cash flows to a single present value, using a rate of return that takes into account the relative risk of cash flows and time value of money.

Equity securities classified as Level 3 of the fair value hierarchy are valued using historical prices. Level 3 investments for the primary government include Common and Preferred Stock.

The primary government also has investments in U.S. Government Securities, U.S. Agency Obligations, Money Market Funds, Negotiable Certificates of Deposit, and SEC 2a7 Rule External Investment Pools measured as amortized cost. These investments are measured in accordance with the exception as provided in GASB 72.

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Retirement Systems and Other Fiduciary Funds

Debt and equity securities classified in Level 1 of the fair value hierarchy include U.S. Government Securities, U.S. Agency Obligations, Corporate Bonds, Mutual Funds, Other Bonds, Equity Securities, Private Equity, Alternative Investments, Real Estate, and Other Short Term Investments held by the Louisiana State Employee’s Retirement System (LASERS), the Louisiana School Employee’s Retirement System (LSERS), Teachers Retirement System of Louisiana (TRSLA), the State’s other Investment & Private Purpose Trust Funds. Level 1 investments are valued using quoted prices in active markets for those securities.

Debt and equity securities classified in Level 2 & 3 of the fair value hierarchy include Commercial Paper, Short Term Investments, U.S. Government & Agency Obligations, Municipal Bonds, Mutual Funds, Corporate & Other Bonds, Mortgages, Equity Securities, Real Estate, Private Equity, Alternative Investments, and Collateral Held Under Securities Lending Program. Level 2 investments are valued using matrix pricing techniques while Level 3 investments are valued using matrix pricing techniques as well as unobservable inputs that are not directly corroborated with market data.

The chart includes investment derivatives held by LASERS, LSERS, and TRSLA. These investments are classified as Level 1 or 2 in the fair value hierarchy. Level 1 investment derivatives are valued using prices quoted in active markets for those derivatives while level 2 derivatives use a market approach that considers benchmark interest rates and foreign exchange rates.

LASERS, LSERS, and TRSLA also had investments measured at Net Asset Value. As required by GASB 72, additional disclosures for these investments can be found in each of the retirement system’s separately issued annual financial report.

LASERS https://www.lla.la.gov/PublicReports.nsf/CDC22E0A3D05F60E8625832F005B5430/$FILE/0001AAF1.pdf TRSL https://www.lla.la.gov/PublicReports.nsf/56D27F0779698E068625832000553704/$FILE/0001A959.pdf LSERS https://www.lla.la.gov/PublicReports.nsf/730C8D91A597C44A86258316005CCB8C/$FILE/0001A79D.pdf

C. INVESTMENTS - CUSTODIAL CREDIT RISK

Custodial credit risk for investments is the risk that in the event of the failure of the counterparty to a transaction the State will not be able to recover the value of the investments or collateral securities that are in the possession of an outside party. Investments are exposed to custodial credit risk if the securities are uninsured and unregistered and are either held by the counterparty, or by the counterparty’s trust department or agent but not in the name of the State. The following chart presents the custodial credit risk of the investments held by the primary government and fiduciary funds at June 30, 2018.

https://www.lla.la.gov/PublicReports.nsf/CDC22E0A3D05F60E8625832F005B5430/$FILE/0001AAF1.pdf%20

https://www.lla.la.gov/PublicReports.nsf/56D27F0779698E068625832000553704/$FILE/0001A959.pdf

https://www.lla.la.gov/PublicReports.nsf/730C8D91A597C44A86258316005CCB8C/$FILE/0001A79D.pdf

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Investments Exposedto Custodial Credit Risk

(Expressed in Thousands)

Uninsured, Unregistered, and

Held by Counterparty

Uninsured, Unregistered, and Held by Counterparty’s

Trust Dept. or Agent but not in the State’s Name

Primary Government:Negotiable Certificates of Deposit $252U.S. Government SecuritiesU.S. Agency ObligationsEquity Securities $277Municipal BondsCorporate Bonds 1,739Other BondsMortgagesMutual Funds 1,738Alternative Investments Total Primary Government $252 $3,754

Fiduciary Funds:Negotiable Certificates of DepositRepurchase AgreementsU.S. Government Securities $5U.S. Agency ObligationsEquity SecuritiesMunicipal BondsCorporate BondsOther BondsMortgagesReal EstateMutual FundsPrivate EquityAlternative InvestmentsSecurity Lending 3,484,000Total Fiduciary Funds $3,484,005

TOTAL INVESTMENTS $252 $3,487,759

D. INVESTMENTS - INTEREST RATE RISK

Interest rate risk is defined as the risk that changes in interest rates will adversely affect the fair value of investments. Also, investments can be highly sensitive to changes in interest rates due to their terms or characteristics.

Primary Government

The State Treasury limits the interest rate risk of the General Fund by limiting maturities of its investments to five years or less. The interest rate risk of certain special funds within the State Treasury is limited by restricting maturities of their investments to ten years or less. The interest rate risk of the Louisiana Education Quality Trust Fund (LEQTF), Millennium Trust Fund, and the Medicaid Trust Fund portfolios are limited by managing their maturity and duration through policy. Further, these portfolios’ weighted average durations are limited by policy to 15 years or less for LEQTF, and 10 years or less for the Millennium Trust Fund and the Medicaid Trust Fund to minimize interest rate risk.

As of June 30, 2018 the State Treasury has $484,000 in investments that might substantially alter their characteristics due to sensitivity to changes in interest rate. The State Treasury also held $770,964,680 in securities whose coupon rates were subject to change daily.

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The table below displays the aggregate total of the primary governments debt investments by type and maturities (amounts expressed in thousands) as of June 30, 2018.

Investment Maturities (in Years)Fair Less Greater

Investment Type Value Than 1 1-5 6-10 Than 10

U.S. Government Securities $2,339,743 $1,158,491 $1,181,252 -- --U.S. Agency Obligations 898,720 78,601 561,062 $239,106 $19,951Negotiable Certificates of Deposit 252 252 -- -- --Corporate Bonds 733,734 43,084 376,358 228,665 85,627Municipal Bonds 486,030 7,321 159,028 213,622 106,059Other Bonds 24,636 10,000 14,636 -- --Mutual Funds 904,936 836,841 67,743 308 44External Investment Pools 363 363 -- -- --

Total $5,388,414 $2,134,953 $2,360,079 $681,701 $211,681


Teachers Retirement System of Louisiana (TRSLA) and Louisiana State Police Retirement System (LSPRS) expect their fixed income managers to approximate the portfolio’s duration to established benchmarks for fixed income investments. The Louisiana School Employee’s Retirement System (LSERS) investment policy indicates that its fixed income securities portfolio is limited to 25% for domestic and 15% for international debt securities. Louisiana State Employee’s Retirement System (LASERS) has no formal interest rate risk policy, but LASERS expects its fixed income managers to approximate the portfolio’s duration to within two years of its respective benchmarks for fixed income investments.

At June 30, 2018, the Louisiana School Employees' Retirement System (LSERS) held $602,876,899 in total debt investments; the Louisiana State Employees' Retirement System (LASERS) held $3,103,211,430 in total debt investments; the Teachers' Retirement System of Louisiana (TRSLA) held $4,726,505,334 in total debt investments; and the Louisiana State Police Retirement System (LSPRS) held $38,436,365 in total debt investments. LSPRS also held $114,477,514 in bonds with no maturity.

The table below displays the aggregate total of the state retirement systems and other fiduciary funds debt investments by type and maturities (amounts expressed in thousands) as of June 30, 2018.

Investment Maturities (in Years)Fair Less Greater

Investment Type Value Than 1 1-5 6-10 Than 10U.S. Government Securities $1,416,323 187,584 394,215 244,944 589,580U.S. Agency Obligations 729,644 443,528 168,436 4,653 113,027Mortgage Backed Securities and

Collateralized Mortgage Obligations 169,104 15 10,591 5,892 152,606

Corporate Bonds 1,408,091 61,083 579,942 557,676 209,390Foreign Bonds 1,930,476 151,880 526,650 563,235 688,711Short-term Investments 1,199,198 1,199,198 -- -- --Repurchase Agreements 107,313 107,313 -- -- --Municipal Bonds 4,097 -- 2,364 513 1,220Other Bonds 767,040 5,400 548,761 119,442 93,437Commercial Paper 726,941 726,941 -- -- --Mutual Funds 131,078 131,074 4 -- --Alternative Investments 1,655,015 1,653,995 -- 1,020 --

Total $10,244,320 $4,668,011 $2,230,963 $1,497,375 $1,847,971

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E. INVESTMENTS - CREDIT RISK & CONCENTRATION OF CREDIT RISK

The credit risk of investments is the risk that the issuer or other counterparty will not meet its obligations. This credit risk is measured by the credit quality ratings of investments in debt securities as described by nationally recognized statistical rating organizations (rating agencies) such as Standard & Poor’s (S&P) and Moody’s. The concentration of credit risk is the risk of loss that may occur due to the amount of investments in a single issuer (not including investments issued or guaranteed by the U.S. government, investments in mutual funds, or external investment pools).

Primary Government

State statutes and investment policies limit the State Treasury investments to government securities with explicit guarantees by the U.S. government, agency securities with implicit U.S. government guarantees, and other fixed income securities with investment grade ratings by Moody’s and S&P. The State Treasury has no limit on the amount it may invest in any one issuer.

Originally, Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) securities held by the State carried an implicit guarantee of the US Government, but are now backed by a capital pledge of the US government. Of the State Treasury’s total investments, 2.8% are issues of the Federal National Mortgage Association (Fannie Mae), 4.4% are issues of the Federal Home Loan Bank, 4.9% are issues of the Federal Farm Credit Bank, and 1.2% are issues of Federal Home Loan Mortgage Corporation (Freddie Mac).

The accompanying table illustrates the primary government’s investments exposure to credit risk as of June 30, 2018 (expressed in thousands):

Rating Fair ValueAAA $503,760AA+ 1,827AA 881,586AA- 2,823A+ 1,921A 330,348A- 781BBB+ 257BBB 228,954BBB- 29BB 13,585B 15,726Not Rated 1,547,291

Total $3,528,888


The investment policies of the state’s retirement systems and other fiduciary funds prescribe the level of credit risk to which their investments in debt securities are exposed. The Louisiana State Police Retirement System (LSPRS) has the following investments that represent 5% or more of LSPRS’s total investments at June 30, 2018: (1) T. Rowe Price Large Cap Growth Fund; (2) Templeton Investments Counsel, Inc. International Value; (3) Loomis Sayles Fixed Income Fund; (4) State Street S&P 500 Flagship Fund; and (5) Wellington CTF International Quality Growth Fund. None of the other retirement systems or trusts had investments in any one issuer (other than those issued or guaranteed by the U.S. government) that represented more than 5% of its total investments.

The following table details the total fair market value of investments in debt securities exposed to credit risk at June 30, 2018 for each of the state’s retirement systems and other fiduciary funds:

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Fair Value (U.S. dollars)(in thousands)

RatingFair

ValueAAA $1,899,880

27,309AA+ 411,795AA 107,655

AA- 358,824A+ 347,705A 339,738A- 414,836A-1 972,413A-1+ 61,916BBB+ 270,169BBB 300,200BBB- 224,694BB+ 260,462BB 280,310BB- 174,130B+ 142,485B 165,007B- 128,059CCC+ 77,536CCC 27,860CCC- 12,080CC 6,816C 383D 7,108Not Rated 2,965,404

Total $9,957,465

F. FOREIGN CURRENCY RISK

Primary Government

The State Treasury limits the foreign currency risk of the State’s investments by prohibiting investing in instruments denominated in foreign currencies. Also, the State has no deposits held by the State Treasury denominated in foreign currencies.

Retirement Systems and Other Trusts

Louisiana School Employees' Retirement System’s (LSERS) investment policy targets 28% of its portfolio to be invested in foreign marketable securities and 10% in global fixed income. At June 30, 2018, LSERS held foreign marketable securities with a fair value of $103,738,624. The Louisiana State Employees' Retirement System (LASERS) held foreign marketable securities with a fair value of $3,210,672,640 at June 30, 2018 and the Teachers' Retirement System of Louisiana (TRSLA) held $3,819,584,929. The Louisiana State Police Retirement System (LSPRS) investment policy allows no more than 22.50% of their portfolio to be international equities, with a target of 12.50%; however at June 30, 2018 the system held no international equities. The following table illustrates the total exposure to foreign currency risk at June 30, 2018 of $7,133,996,193 by currency denomination and investment type:

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Fair Value (U.S. dollars)(in thousands)

) StocksCurrency Bonds & OtherArgentina peso

Australian dollar

$14,617 $3,512 Australian dollarBrazilian real

48,708 223,062Brazil realBritish pound

88,678 35,333British pound sterling 96,745 726,061Canadian dollar 19,784 311,223

Chilean peso 6,660 7,085Chinese yuan renminbi -- 1,031Columbian peso 45,125 1,056Czech koruna 3,282 5,193Danish krone 20,322 77,933Dominican Republic peso 2,081 --Egyptian pound -- 3,741European euro 140,404 2,387,650Ghanaian Cedi 1,423 (267)Hong Kong dollar -- 364,955Hungarian forint 4,143 8,779Indian rupee -- 21,452Indonesian rupiah 94,050 8,258Israeli shekel -- 9,894Japanese yen 32,862 992,039Kazakhstan Tenge 389 --Malaysian ringgit 45,812 16,248Mexican new peso 169,553 3,508New Taiwan dollar -- 42,730New Zealand dollar 210 21,202Nigerian naira 144 3,110Norwegian krone 422 55,735

Peruvian sol 8,926 (1,205)Philippines peso 1,029 4,117Polish zloty 31,989 9,211Qatari riyal -- 584Romanian leu 5,652 629Russian ruble 49,692 297Saudi Arabian riyal -- (1,436)Singapore dollar -- 80,190South African rand 78,415 22,620South Korean won 196 102,272Swedish krona 31,460 145,576Swiss franc 1,318 305,891Thailand baht 12,618 18,040Turkish lira 32,703 14,591Uruguayan peso 9,415 --UAE dirham -- 3,269

Total $1,098,827 $6,035,169

G. SECURITIES LENDING

State Treasury and Other Trusts

In accordance with its authority under LRS 49:321.1, the State has entered into a securities lending agreement that functions as a reverse repurchase/repurchase arrangement, with Morgan Stanley acting as principal. Under the arrangement, Morgan Stanley purchases (or borrows) on an overnight basis that portion of the State’s pool of U.S. Treasury and Agency securities which the State from time to time makes available for such purposes, with a simultaneous agreement to resell or repurchase such securities at the termination of the transaction. The reverse repurchase and repurchase transactions are executed pursuant to the terms of a paired repurchase agreement among the State and Morgan Stanley, with the Bank of New York acting as an independent third party custodian. The State receives U.S. Government Sponsored Entity, or “agency” collateral in addition to other eligible security collateral in return for the securities that it reverses to Morgan Stanley under the terms of the reverse repurchase transaction on a fixed-spread basis.

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Four separate funds were included in the securities lending agreement for the fiscal year ending June 30, 2018. At June 30, 2018, the collateral exceeded the value of the securities on loan by $94,094,651 for the general fund, $8,601,876 for the Louisiana Education Quality Trust Fund (LEQTF), $10,230,965 for the Millennium Trust Fund (the Millennium Trust), and $1,729,567 for other pooled state funds.

At June 30, 2018, the value of securities on loan was $2,638,732,996 for the Treasurer’s pooled general fund investments; $370,806,000 for LEQTF; $371,802,500 for the Millennium Trust Fund; and $80,101,000 for other pooled investments.

In each transaction, Morgan Stanley delivers collateral from its account at the Bank of New York to the State’s custodial account at the Bank of New York. The Bank of New York monitors the movement of the collateral to ensure it is sufficient (equal to at least 102% of the value of the securities borrowed) and in compliance with the terms of the reverse repurchase/repurchase agreement. The market value principal of the repurchase transaction can be modified on any given day for purchased, sold or matured securities. Morgan Stanley then receives any excess collateral, or delivers additional collateral, against the new principal market value of the State’s investment securities on loan through the repurchase transaction. During the term of any particular transaction, the State’s right to receive or sell the collateral is determined pursuant to the terms of the repurchase agreement, which provides for such rights upon borrower default, and in accordance with other applicable state and federal laws. The State has experienced no losses on securities lending transactions and loss indemnification is provided in the contract with Morgan Stanley.

The State’s security lending agreements also include U.S. Government and Government Sponsored Entity securities held within the State’s trust fund, the Louisiana Education Tuition & Savings Fund. As of the funds year end, December 31, 2017, the fair market value of the securities on loan within the trust fund was $168,135,665. The trust fund had limited credit risk exposure because the value of the collateral securities pledged exceeded the value of the securities on loan by $3,362,713.

As of June 30, 2018, the State had limited credit risk exposure because the market value of the U.S. Government and Government Sponsored Entity, and other eligible securities pledged as collateral to the State exceeded the value of securities the State had out on loan by $114,657,059. The value of the securities on loan was $3,461,442,496 and the total market value of the securities held as collateral was $3,576,099,554. The value of the collateral securities was 103.31% of the value of loaned securities. The Risk to the State is further mitigated because loss indemnification is provided to the State in the securities lending contract with Morgan Stanley.

Retirement Systems

The Louisiana State Police Retirement System (LSPRS), the Teachers' Retirement System of Louisiana (TRSLA), the Louisiana School Employees' Retirement System (LSERS), and the Louisiana State Employees' Retirement System (LASERS) are authorized by their respective boards of trustees to operate securities lending programs. These programs are designed to produce supplemental income on investments with little or no additional risk. All securities are available for loan to pre-approved securities dealers. Securities dealers must meet specific criteria to be approved. The TRSLA lends securities for cash collateral or other securities/investment collateral. The LSPRS lends securities for cash, cash collateral or other securities/investment collateral. The LASERS and LSERS lend securities for cash, and other securities. Additionally, LSERS may lend its securities for irrevocable letters of credit and LASERS may lend securities for other securities/investments collateral. Collateral held under the programs, which may be reinvested by the systems under the terms of the agreement with the broker/dealer, is recorded as an asset with a corresponding liability; otherwise, the collateral is not recorded on the statement of net position. None of the retirement systems may pledge or sell collateral securities received unless the borrower defaults.

The TRSLA lends domestic securities for cash collateral of 100%, domestic securities for other securities collateral at 102%, and international securities for cash collateral or other securities collateral of 105%. The LSPRS, LSERS and LASERS lend U.S. securities for collateral valued at 102% of the market value of the securities. Non-U.S. securities are loaned for collateral valued at 105% of the market value of the securities for LSERS and LASERS. In instances where LSPRS, TRSLA and LSERS loans are for term, the reinvestment of the cash is matched to the maturity of the loan. The majority of LASERS loans are terminable at will. Therefore, their duration will not generally match the duration of the investments made with cash collateral.

At June 30, 2018, neither LSPRS, LASERS, TRSLA, nor LSERS had any credit risk exposure to borrowers at year end because the amount the plan owes the borrowers exceeds the amount the borrowers owe the plan. Securities loans of all four systems may be terminated on demand by either party within a period specified in the related agreement. There were neither significant violations of legal or contractual provisions, nor borrower or lending agent default losses known to the securities lending agents of LSPRS, LSERS or TRSLA. The LASERS and LSERS have indemnification agreements with their securities lending agents in case of borrower default. Securities on loan at June 30, 2018 totaled $1,747,154,081 for LASERS, $3,109,614,857 for TRSLA, $107,161,786 for LSERS, and $49,081,895 for LSPRS.

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H. DERIVATIVES

Governmental Activities

As of June 30, 2018, the State is a party to 6 pay-fixed, receive-variable interest rate swaps. These instruments are reported on the government-wide statement of net position at fair value. The fair values take into consideration the prevailing interest rate environment, the nonperformance risk of the client counterparty, and the specific terms and conditions of each swap. All fair values were estimated using the zero-coupon discounting method. This method calculates the future payments required by the swaps taking into account nonperformance risk by tracking the relevant credit risk of the State of Louisiana (State) as well as the counterparty on a given reporting date and determining which risk would be appropriate to discount the expected cash flows. These payments are then discounted using the State’s relevant interest rate curve for liabilities or the counterparty’s relevant yield for assets.

As of June 30, 2018, the State determined that all remaining pay-fixed interest rate swaps qualify for hedge accounting under GASB Statement No. 53. Accordingly, changes in fair market value are offset by corresponding deferred outflows/inflows of resources on the government-wide statement of net position. The tables below summarize the derivatives activity for the year and the key terms and objectives of the derivative instruments outstanding at June 30, 2018:

Summary of Derivative InstrumentsGovernmental Activities

(in thousands)

Changes in Fair Value Fair Value at June 30Classification Amount Classification Amount

Hedging Derivative InstrumentsCash Flow Hedges

Pay-Fixed Interest Rate Swaps Deferred Inflow of Resources $39,964

Derivative Instrument Asset

$21,123

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Terms and Objectives of Hedging Derivative Instruments(in thousands)

Type Notional ObjectiveEffective

DateMaturity

Date Terms

Counterparty Credit Rating

(Moody’s/S&P)

Pay-Fixed, Receive Variable Interest Rate Swap

$46,500

Hedge changes in cash flows on Gas and Fuels 2017 Series D-1 Bonds

05/01/09 05/01/43Pay 3.694%; Receive 70% of USD-LIBOR

Aa3/A+


$14,125

Hedge changes in cash flows on Gas and Fuels 2017 Series A Bonds


Aa3/A+


$56,500



Baa2/BBB+


$186,000

Hedge changes in cash flows on Gas and Fuels 2017 Series A Bonds


Baa2/BBB+


$93,000



Aa2/AA-


$28,250



Aa2/AA-

Credit Risk: Credit risk is the risk that the counterparty will default on its obligation to make net settlement payments in accordance with the contract. The State is exposed to credit risk to the extent that the contracted receive-variable rates exceed the contracted pay-fixed rate. During the year, receive-variable rates never exceeded the pay-fixed rate. Consequently, the State had no exposure to credit risk during the year.

Interest Rate Risk: The State’s participation in pay-fixed, receive-variable interest rate swaps exposes the State to interest rate risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair values of a government’s financial instruments or a government’s cash flows. Fluctuations in interest rates affect the net settlement payments between the counterparties and the fair value of the swaps. Currently, the variable rate of interest the State receives under the swap agreements (70% of 1-month USD-LIBOR) is lower than the fixed rates the State pays (3.692% - 3.9315%). A decline in USD-LIBOR relative to the pay-fixed rates will adversely affect the State. On the other hand, an increase in USD-LIBOR relative to the pay-fixed rates will favorably affect the State.

Basis Risk: Basis risk is the risk that arises when variable rates or prices of a hedging derivative instrument and a hedged item are based on different reference rates. The variable rate the State received under the swap agreements and the variable rate paid to bondholders are both based on 1-month USD-LIBOR. Therefore, the State is not exposed to basis risk.

Termination Risk: The State or the swap providers may terminate the swap agreements if the other party fails to perform under the terms of the contract. As long as the State continues to perform its obligations on the swap contracts, there is no termination risk arising from the provider actions during the next fiscal period. However, the State is exposed to termination should the State decide to take action regarding the outstanding bonds which would trigger an event of termination on the existing swaps. Also, if at the time of the termination the swap has a negative fair value, the State would be liable to the swap providers for a payment equal to the swap’s fair value.

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Rollover Risk: Rollover risk is the risk that a hedging derivative instrument associated with a hedgeable item does not extend to the maturity of that hedgeable item. Because the interest rate swaps are coterminous with the hedged debt, the State is not exposed to rollover risk.

Market access Risk: Market-access risk is the risk that the State will not be able to enter credit markets or that credit will become more costly, resulting in the objective of derivative instrument not being achieved. The likelihood that the State will not be able to enter credit markets in the future is remote.

Foreign Currency Risk: Foreign currency risk is the risk that changes in exchange rates will adversely affect cash flows or fair market values. The interest rate swaps do not expose the State to foreign currency risk.

Nonperformance Risk: Nonperformance risk is the risk to each party of a contract that the counterparty will not live up to its contractual obligations.

Fiduciary Funds

LASERS, TRSL, and LSERS held investments in various derivative financial instruments including interest-only strips, principal-only strips, collateralized mortgage obligations, options, forward foreign exchange contracts, futures contracts, and synthetic guaranteed investment contracts (SGIC).

TRSL invests in interest-only strips and principal-only strips which are mortgage-backed securities that involve the separation of the interest and principal components of a security.

TRSL and LASERS invest in collateralized mortgage obligations which are collateralized by mortgages, mortgage pass-through securities, or stripped mortgage-backed securities and can be highly sensitive to interest rate fluctuations. Additionally, TRSL, LSERS, and LASERS invest in forward foreign exchange contracts which are contractual agreements between two parties to pay or receive specific amounts of foreign currency at a future date in exchange for another currency for an agreed upon exchange rate. The systems also invests in futures contracts which are agreements for delayed delivery of securities, currency, commodities, or money market instruments in which the seller agrees to make delivery at a specified future date of a specified instrument, at a specific price or yield. TRSL and LASERS further invests in options on futures allowing the holder and writer of the option the right to exchange futures positions. LASERS also maintains a fully benefit-responsive synthetic guaranteed investment contract option for members of the Optional Retirement Plan and the Self-Directed Plan. The investment objective of the SGIC is to protect members from loss of their original investment and to provide a competitive interest rate. As of June 30, 2018, the contract value of the SGIC contract was $509.8 million and the fair value of the LASERS Stable Value Fund was $498.4 million. This resulted in the fair value of the fund being less than the value protected by the wrap contract by $11.4 million. The counterparty rating for the wrap contract is AA. The wrap represents an unconditional guarantee of compliance/repayment of principal and interest in accordance with the underlying agreement.

The table below provides summary data for the State’s outstanding derivative instruments within the fiduciary funds as of June 30, 2018.

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Summary of Investment Derivative InstrumentsFiduciary Funds(in thousands)

Changes in Fair Value Fair Value at June 30Notional Classification Amount Classification Amount

Futures Based Overlay Program $456,215

Net Appreciation/(Depreciation) in Fair Value of Investments

($15,203)Pending Trades Payable

($16,974)

Short Fixed Income & Written Options $0


($145,323)Pending Trades Payable

($408,033)

Forward Foreign Exchange Contracts $2,164,385


($19,705) Investments ($14,438)

Futures Int’l Equity ($4,434)Net Appreciation/(Depreciation) in Fair Value of Investments

($8) InternationalEquity ($6)

Futures Fixed Income $1,020Net Appreciation/(Depreciation) in Fair Value of Investments

($13) Domestic Bonds ($13)

Swaps Domestic $1,647Net Appreciation/(Depreciation) in Fair Value of Investments

($2,333) Domestic Bonds ($2,376)

Swaps International $3,324Net Appreciation/(Depreciation) in Fair Value of Investments

$2,277 International Bonds $2,277

Risk Disclosures

Credit Risk: As of June 30, 2018 TRSL’s credit risk had not increased with the use of the overlay strategy because the futures based overlay program uses exchange traded futures contracts.

Foreign Currency Risk: As of June 30, 2018 LSER’s, LASER’s, and TRSL’s foreign exchange currency contracts were exposed to foreign currency risk.

The following table illustrates LASER’s total exposure to foreign currency risk at June 30, 2018 of ($47,641,132) by currency denomination:

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At June 30, 2018 TRSL’s foreign currency risk has been reduced by use of the futures based overlay program. The use of the overlay program reduced the variance of TRSL’s actual return to the benchmark return.

Fair Value (U.S Dollars)

Currency ValueArgentinian Peso $2,443,588Brazilian Real (2,849,818)British Pound (4,976,975)Canadian Dollar 4,457,491Chilean Peso 4,011,304Columbian Peso (2,992,337)Czech Koruna 5,186,599Danish Krone 2,255,485Euro (43,180,278)Ghanaian Cedi (394,286)Indonesian Rupiah (2,752,974)Japanese Yen 733,391Mexican Peso (1,022,809)New Taiwan Dollar (4,187)New Zealand Dollar (7,793,285)Nigerian Naira (57,548)Peruvian Sol (1,482,981)Polish Zloty 1,909,616Romanian Leu 628,099Saudi Arabian Riyal (1,435,874)Singapore Dollar 1,613,495South African Rand 718,122Swedish Krona (406,439)Thailand Baht (1,469,266)Turkish Lira (779,265)

Total ($47,641,132)

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NOTE 3: ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE

Balances of receivables and payables have been aggregated for presentation in the accompanying financial statements. The following schedules provide additional detail concerning balances of receivables and payables by category and fund type.

A. RECEIVABLES

Receivable balances at June 30, 2018, are as follows (expressed in thousands):

Governmental Funds

General

Fund

Bond Security & Redemption

Fund

Capital Outlay Escrow

Fund

Louisiana Education

Quality Trust Fund

Nonmajor Governmental

Funds

Total Governmental

Funds Applicants & Grantees $ 178,029 $ -- $ -- $ -- $ -- $ 178,029Corporate Income Tax -- 217,933 -- -- -- 217,933Individual Income Tax -- 505,471 -- -- -- 505,471Sales & Use Tax -- 475,831 -- -- 2,059 477,890Severance Tax 175 84,189 -- -- -- 84,364Tobacco Tax -- 23,872 -- -- -- 23,872Franchise Tax -- 7,101 -- -- -- 7,101Gas & Fuels Tax -- 42,481 -- -- 70 42,551Insurance Premium Tax -- 190,847 -- -- -- 190,847Alcohol Tax -- 6,128 -- -- -- 6,128Occupancy Tax 727 10,558 -- -- -- 11,285Other Taxes -- 6,365 -- -- 4,034 10,399Gaming -- 16,133 -- -- -- 16,133Mineral Settlements, Royalties, Bonuses & Rent 355 20,284 5 -- 14 20,658Interest & Dividends 299 2,316 -- -- 100 2,715Licenses, Permits & Fees 58 59,254 -- -- 7,526 66,838Sale of Commodities & Services 207 9,758 119 -- -- 10,084Unclaimed Property 350 53 -- -- -- 403Gifts, Donations, & Contributions 2 6,827 487 -- -- 7,316Other 269,267 111,152 1,205 3 53 381,680 Receivables (Net) $ 449,469 $ 1,796,553 $ 1,816 $ 3 $ 13,856 $ 2,261,697 Amounts not expected to be collected within one year $ -- $ 628,902 $ -- $ -- $ -- $ 628,902

Proprietary Funds

Business-Type Activities - Enterprise Funds Governmental Activites

Unemployment

Trust Fund

Louisiana Community & Technical

Colleges System

Nonmajor Enterprise

Funds

Total Enterprise

Funds Internal Service

Funds Employer Contribution (Gross) $ 82,445 $ -- $ -- $ 82,445 $ --Tuition and Fees (Gross) -- 24,112 73 24,185 --Other (Gross) 53,373 5,806 7,036 66,215 44,959Total Receivables 135,818 29,918 7,109 172,845 44,959Allowance for Uncollectibles (67,560) (10,860) (162) (78,582) (18)Receivables (Net) 68,258 19,058 6,947 94,263 44,941

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B. ACCOUNTS PAYABLE AND ACCRUALS

Accounts payable and accruals at June 30, 2018, are as follows (expressed in thousands):

Governmental Funds

General

Fund

Bond Security & Redemption

Fund


Fund

Louisiana Education

Quality Trust Fund


Funds

Total Governmental

Funds

Salaries, Wages & Related Benefits $ 111,814 $ -- $ -- $ -- $ -- $ 111,814Travel & Training 1,483 -- 3 -- -- 1,486Operating Services 50,109 -- 5,698 -- 65 55,872Professional Services 109,876 117 53 -- 32 110,078Supplies 23,959 -- -- -- 1 23,960Grants & Public Assistance 85,525 -- -- -- -- 85,525Capital Outlay 35,391 -- 206,305 -- -- 241,696Other Charges 1,101,533 -- 541 1,044 6,225 1,109,343

Total Accounts Payable $ 1,519,690 $ 117 $ 212,600 $ 1,044 $ 6,323 $ 1,739,774

Proprietary Funds

Business-Type Activities - Enterprise Funds Governmental

Activites

Unemployment

Trust Fund

Louisiana Community &

Technical Colleges System

Nonmajor Enterprise

Funds

Total Enterprise

Funds

Internal Service

Funds Salaries, Wages & Related Benefits $ -- $ 21,941 $ 1,322 $ 23,263 $ 3,568Travel & Training -- 181 13 194 20Operating Services -- 2,977 1,124 4,101 3,555Professional Services -- 1,519 356 1,875 5,872Supplies -- 1,478 2,523 4,001 269Grants & Public Assistance -- 5,551 761 6,312 --Capital Outlay -- 3,295 110 3,405 2,248

Other Charges -- 531 1,076 1,607 8,057Total Accounts Payable $ -- $ 37,473 $ 7,285 $ 44,758 $ 23,589

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NOTE 4: INTRA-ENTITY TRANSACTIONS

INTERFUND ACCOUNTS AND TRANSFERS

A. RECEIVABLES AND PAYABLES

A summary of interfund receivables and payables at June 30, 2018, is shown below (expressed in thousands):

Primary Government

Due from Other Funds Due to Other Funds GOVERNMENTAL FUNDS:

General Fund $ 1,298,692 $ 280,487 Bond Security & Redemption Fund 161,701 1,182,770 Capital Outlay Escrow Fund 201,258 133,999 Louisiana Education Quality Trust Fund 576 4,121 Nonmajor Governmental Funds 103,111 134,161

Total Governmental Funds 1,765,338 1,735,538 PROPRIETARY FUNDS:

Unemployment Trust Fund -- 47 Louisiana Community & Technical Colleges System 2,832 378 Nonmajor Enterprise Funds 357 1,402 Internal Service Funds 69 31,231

Total Proprietary Funds 3,258 33,058 GRAND TOTALS $ 1,768,596 $ 1,768,596

B. TRANSFERS IN AND OUT

A summary of transfers in and out at June 30, 2018, is shown below (expressed in thousands):

Primary Government

Transfers In Transfers Out GOVERNMENTAL FUNDS:

General Fund $ 14,151,008 $ 447,692 Bond Security & Redemption Fund 52,450 14,219,538 Capital Outlay Escrow Fund 961,909 7,858 Louisiana Education Quality Trust Fund 68,825 22,095 Nonmajor Governmental Funds 729,501 1,397,870

Total Governmental Funds 15,963,693 16,095,053 PROPRIETARY FUNDS:

Louisiana Community & Technical Colleges System 170,527 -- Nonmajor Enterprise Funds 13,062 52,003 Internal Service Funds -- 226

Total Proprietary Funds 183,589 52,229 GRAND TOTALS $ 16,147,282 $ 16,147,282

C. PURPOSE OF INTERFUND BALANCES AND TRANSFERS

Per the Louisiana Constitution of 1974, most state revenues are deposited into the Bond Security and Redemption Fund (BSRF). The BSRF is used to provide for the collection of all money deposited into the State Treasury except federal funds, donations, or other forms of assistance when terms and conditions of the related agreement require otherwise. This process is unique to Louisiana to ensure that all obligations secured by the full faith and credit of the State that are due and payable are met. Each month an amount is allocated from this fund to pay the obligations of the State, including debt principal, interest, premiums, and sinking or reserve funds. All monies remaining in the fund are transferred to the General Fund and various other funds. The BSRF does not retain a fund balance. As a result, there are a large number of transfers from BSRF to the General Fund and to other funds.

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As a result of the appropriations process, the General Fund receives a large number of transfers which are used to provide for the operations of the State. As mentioned in the previous paragraph, most revenues first pass through BSRF and are distributed to various funds. Transfers from BSRF to the General Fund include the receipt of general revenues (taxes, licenses, and fees) and agency self-generated fees. In addition, the General Fund receives transfers from various other governmental funds as provided for in the annual appropriations act.

SIGNIFICANT TRANSACTIONS BETWEEN THE PRIMARY GOVERNMENT AND MAJOR DISCRETELY PRESENTED COMPONENT UNITS

A. PRIMARY GOVERNMENT SUPPORT PROVIDED TO MAJOR DISCRETELY PRESENTED COMPONENT UNITS

The Legislature appropriates resources of the primary government to support the operations of various entities through the annual appropriations acts. The State also provides support to various entities through capital grants and contributions for projects authorized in annual capital outlay acts. For the fiscal year ended June 30, 2018, state appropriations to support the operations of major discretely presented component units and capital grants and contributions provided by the State for major discretely presented components units were as follows (in thousands):

Support Provided by Primary Government

Major Component Unit:Operating

Appropriations Capital Grants Total Support

Louisiana State University System $ 413,848 $ 28,508 $ 442,356

University of Louisiana System 231,508 19,561 251,069

Southern University System 46,118 7,494 53,612

Board of Regents 363,444 -- 363,444Louisiana Stadium & Exposition District 16,281 -- 16,281

Total $ 1,071,199 $ 55,563 $ 1,126,762

B. LOUISIANA LOTTERY CORPORATION

The Louisiana Lottery Corporation (the Corporation) was created in accordance with LRS 47:9000-9081 and 14:90(C) to support elementary and secondary education in Louisiana. The Corporation is required to pay to the State an amount not less than 35% of the Corporation’s gross revenues. The amount of gross revenues less costs that is determined to be surplus to the needs of the Corporation must also be paid to the State. In fiscal year 2018, the State received $171,955,980 from the Corporation.

C. PUBLIC HOSPITAL LEASES

Act 3 of the 1997 Regular Session charged the LSU System with the responsibility of operating 10 public hospitals. These hospitals are the primary source of health care services for the indigent population of the State and account for over one million in-patient and out-patient visits each year. In addition, these hospitals are utilized by the LSU Health Sciences Center as teaching hospitals wherein the medical and dental faculty and medical education students provide the necessary medical care to patients. In fiscal years 2013 and 2014, public-private partnerships were executed to remove operational responsibility for these hospitals from the LSU System.

In consideration for allowing the private partners to operate the hospitals, the LSU System will receive lease payments over the life of the agreements. Act 420 of the 2013 Regular Session mandated that all collections of lease payments be deposited with the State Treasury. During fiscal year 2018, LSU deposited $90,337,803 in hospital lease payments with the State Treasury.

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NOTE 5: CAPITAL ASSETS(in thousands)

Capital Assets Capital AssetsGovernmental Activities: July 1, 2017 Additions Deletions June 30, 2018 Capital assets not being depreciated:

Land * $ 2,264,259 $ 20,372 $ 3,015 $ 2,281,616Construction in progress * 1,408,874 553,703 541,806 1,420,771

Total capital assets not being depreciated * 3,673,133 574,075 544,821 3,702,387 Other capital assets historical cost:

Buildings and improvements * 2,592,079 35,024 7,561 2,619,542Machinery and equipment * 840,788 79,886 47,304 873,370Infrastructure * 26,972,090 509,283 32,550 27,448,823Intangible Assets * 106,643 54 -- 106,697

Total other capital assets historical cost * 30,511,600 624,247 87,415 31,048,432 Less accumulated depreciation and amortization:

Buildings and improvements * 1,008,751 68,337 7,561 1,069,527Machinery and equipment * 731,908 60,233 50,065 742,076Infrastructure * 17,064,166 482,760 32,550 17,514,376Intangible Assets * 76,972 9,653 -- 86,625Total accumulated depreciation & amortization * 18,881,797 620,983 90,176 19,412,604

Other capital assets, net of depreciation & amortization * 11,629,803 3,264 (2,761) 11,635,828 Governmental activities capital assets, net * $ 15,302,936 $ 577,339 $ 542,060 $ 15,338,215

Business-type Activities: Capital assets not being depreciated:

Land * $ 61,167 $ 249 $ 43 $ 61,373Construction in progress * 114,058 53,335 127,079 40,314

Total capital assets not being depreciated * 175,225 53,584 127,122 101,687 Other capital assets historical cost:

Buildings and improvements * 684,410 126,010 -- 810,420Machinery and equipment * 170,305 14,046 8,588 175,763Infrastructure 375,520 302 -- 375,822Intangible Assets * 20,638 576 8 21,206

Total other capital assets historical cost * 1,250,873 140,934 8,596 1,383,211 Less accumulated depreciation and amortization:

Buildings and improvements * 210,950 20,206 -- 231,156Machinery and equipment * 132,290 11,491 6,586 137,195Infrastructure 65,454 9,407 -- 74,861Intangible Assets 10,984 2,192 -- 13,176Total accumulated depreciation & amortization * 419,678 43,296 6,586 456,388

Other capital assets, net of depreciation & amortization * 831,195 97,638 2,010 926,823Business-type activities capital assets, net * $ 1,006,420 $ 151,222 $ 129,132 $ 1,028,510

* Restated beginning balances

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Depreciation and amortization expense was charged to functions as follows (expressed in thousands):

Governmental activities: General Government $ 28,141Agriculture & Forestry 1,596Economic Development 311Military & Veterans Affairs 26,562Workforce Support & Training 1,599Culture, Recreation & Tourism 9,488Transportation & Development 492,079Corrections 10,512Public Safety 21,015Youth Development 1,814Health & Welfare 3,759Conservation & Environment 19,223Education 4,884

Total governmental activities depreciation and amortization expense $ 620,983

NOTE 6: EMPLOYEE BENEFITS – PENSIONS

The State of Louisiana is a participating employer in seven defined benefit plans, each administered by separate public employee retirement systems. Article X, Section 29(F) of the Louisiana Constitution of 1974 assigns the authority to establish and amend benefit provisions of all plans administered by these public employee retirement systems to the State Legislature.

Plan Descriptions

Louisiana State Employees’ Retirement System (LASERS) administers a cost-sharing defined benefit pension plan to provide retirement, disability, and survivor benefits to eligible state employees and their beneficiaries as defined in LRS 11:411-413. The age and years of creditable service required in order for a member to receive retirement benefits are established by 11:441 and vary depending on the member’s hire date, employer and job classification. Eligibility and the computation of retirement benefits are provided for in LRS 11:444.

Louisiana State Police Retirement System (LSPRS) administers a single employer defined benefit pension plan to provide retirement, disability, and survivor benefits to commissioned law enforcement officers of the Office of State Police and the Superintendent of State Police and their beneficiaries as defined in LRS 11:1305. Eligibility for retirement benefits and the computation of retirement benefits are provided for in LRS 11:1307 and 11:1345.4–1345.5.

As of June 30, 2017, the most recent measurement date, the following employees were covered by the benefit terms:

Retirees and beneficiaries currently receiving benefits, and deferred retirement plan participants 1,155

Terminated vested members not yet receiving benefits 182

Current active employees (vested and non-vested) 1,0712,408

Teachers' Retirement System of Louisiana (TRSL) is the administrator of a cost-sharing defined benefit pension plan. The plan provides retirement, disability, and survivor benefits to employees who meet the legal definition of a “teacher” as provided for in LRS 11:701. Eligibility for retirement benefits is provided for in LRS 11:735, 11:761, 11:768 and 11:802. Calculation of retirement benefits are provided for in LRS 11:735, 11:768 and 11:803.

Louisiana School Employees' Retirement System (LSERS) is the administrator of a cost-sharing defined benefit pension plan. The plan provides retirement, disability, and survivor benefits to school employees as defined in LRS 11:1002. Eligibility for retirement benefits and the computation of retirement benefits are provided for in LRS 11:1141 and 11:1144.

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District Attorneys’ Retirement System (DARS) administers a cost-sharing defined benefit pension plan. Pursuant to LRS 11:1582, the plan provides retirement, disability, and survivor benefits to district attorneys, assistant district attorneys, and employees of the Louisiana District Attorneys’ Association. Eligibility for retirement benefits and the computation of retirement benefits are provided for in LRS 11:1581 and 11:1632-1633.

Louisiana Clerks’ of Court Retirement and Relief Fund (LCCRRF) administers a cost-sharing defined benefit pension plan. The plan provides retirement, disability, and survivor benefits to clerks of court, their deputies and other employees as defined in LRS 11:1503. Eligibility for retirement benefits and the computation of retirement benefits are provided for in LRS 11:1521.

Registrar of Voters Employees’ Retirement System (ROVERS) is the administrator of a cost-sharing defined benefit pension plan. In accordance to LRS 11:2032, the plan provides regular retirement, disability, and survivor benefits to registrars of voters in each parish, their deputies, their permanent employees, and eligible beneficiaries. Eligibility for retirement benefits and the computation of retirement benefits are provided for in LRS 11:2071–2072 and 11:2165.3-4.

A brief summary of eligibility and benefits of the plans are provided in the following table:

LASERS LSERS TRSL LSPRS DARS LCCRRF ROVERS

Final average salary

Highest 36 or 60 months1







Years of service 30 years any age 30 years any age10 25 years any age 30 years any age 12 years age 55 30 years any age8,9

required and/or 25 years age 55 25 years age 55 20 years any age7 24 years age 555 12 years age 602 20 years age 558,9

age eligible for benefits 20 years any age7 20 years any age7 12 years age 552 10 years age 605 10 years age 608,9

5-10 years age 603&11 5 years age 6011 10 years age 5013 10 years age 6212

18 years age 6012

23 years age 5512

Benefit percent per years of service 2.5% to 3.5% 6

2.5% to 3.33%4 2% to 3%4 3.33% 3% to 3.5%5 3% to 3.33%4 3% to 3.33%4

1Employees hired after a certain date use the revised benefit calculation based on the highest 60 months of service 8 For those hired prior to 1/1/2013

2 For those hired after 12/31/10 9 Hired after 12/31/12; age eligibility is 30 years at 55, 20 years at 60, & 10 yrs. at age 62

3Five to ten years of creditable service at age 60 depending upon the plan or when hired 10 For school food service workers hired on or before 6/30/15, eligibility is 30 yrs. at age 55

4 Benefit percent varies depending upon the plan or when hired 11 Hired on or after 7/1/15, age eligibility is 5 years at age 625 Joined plan after 7/1/90 12 For those hired before 7/1/906 Members in regular plan 2.5%, hazardous duty plan 3.33%, and judges 3.5% 13 For those hired before 12/31/107 With actuarial reduced benefits

Cost of Living Adjustments

The pension plans in which the State participates have the authority to grant cost-of-living adjustments (COLAs) on an ad hoc basis. COLAs may be granted to the state systems, (LASERS, LSPRS, TRSL and LSERS) if approved with a two-thirds vote of both houses of the Legislature, provided the plan meets certain statutory criteria related to funded status and interest earnings.

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Pursuant to LRS 11:242(B), the power of the Board of Trustees of the statewide systems (DARS, LCCRRF, and ROVERS) to grant a COLA is effective in calendar years that the legislature fails to grant a COLA, unless in the legislation granting the COLA, the legislature authorizes the Board of Trustees to provide an additional COLA. Subject to funded status and interest earnings (and the Consumer Price Index for All Urban Consumers must have increased more than 3% since the last increase for LCCRRF), the Board of Trustees of DARS, LCCRRF, and ROVERS is authorized to grant retired members and surviving beneficiaries of members who have been retired not less than one year for DARS and LCCRRF and at least two years for ROVERS a COLA of 3% (2.5% for LCCRRF) of their original benefit (not to exceed $60 per month for DARS and $40 per month for LCCRRF) in accordance with LRS 11:1638, 11:1549, and 11:2073, respectively. In addition to any other COLA, the Board of Trustees of all systems may provide a supplemental COLA to all retirees and beneficiaries who are sixty-five years of age or over of two percent of the benefit being received, in accordance with LRS 11:246(B). In accordance with LRS 11:241, in lieu of other cost of living increases, the Board may grant an increase to retirees in the form of “X times (A + B)” where “A” is equal to the number of years of service accrued at retirement or death of the member or retiree and “B” is equal to the number of years since death of the member or retiree to June 30th of the initial year of increase and “X” is equal to any amount available for funding such increase up to a maximum of $1.00. The effects of the benefit changes made as a result of the COLAs is included in the measurement of the total pension liability as of the measurement date at which the ad hoc COLA was granted and the amount is known and reasonably estimable.

Contributions

Article X, Section 29(E)(2)(a) of the Louisiana Constitution of 1974 assigns the Legislature the authority to determine employee contributions. Employer contributions are actuarially determined using statutorily established methods on an annual basis and are constitutionally required to cover the employer’s portion of the normal cost and provide for the amortization of the unfunded accrued liability. Employer contributions are adopted by the Legislature annually upon recommendation of the Public Retirement Systems’ Actuarial Committee. In addition, TRSL, DARS, LCCRRF and ROVERS receive a percentage of ad valorem taxes collected by parishes. These entities are not participating employers in the pension systems and are considered to be nonemployer contributing entities.

Contributions of employees, employers, and non-employer contributing entities effective for the year ended June 30, 2018 for the defined benefit pension plans in which the primary government is a participating employer were as follows (in thousands):

Defined Benefit Pension Plan

Active Member Contribution Percentage

Employer Contribution Percentage

Amount from Nonemployer

Contributing Entities*Amount of State

Contributions

LASERS 7.5% - 13.0% 37.8% -- 577,042

LSPRS 8.5% - 9.5% 47.4% -- 47,922

TRSL 5.0% - 9.1% 25.4% - 26.6% 39,550 50,920

LSERS 7.5% - 8.0% 27.6% -- 256

DARS 8.0% As appropriated 8,534 0

LCCRRF 8.25% 19.0% 10,650 1,497

ROVERS 7.0% 17.0% 2,819 1,757

* This represents the collective amount of nonemployer contributions by pension system.

Net Pension Liability

The State’s net pension liability at June 30, 2018 is comprised of the entire net pension liability relating to the State’s single-employer plan (LSPRS) and the State’s proportional share of the net pension liability relating to each of the cost-sharing plans in which the State is a participating employer (LASERS, TRSL, LSERS, DARS, LCCRRF, and ROVERS). The State’s net pension liability for each plan was measured as of June 30, 2017 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The State’s proportionate share of the net pension liability for each of the cost-sharing plans in which it participates was based on the State’s required contributions in proportion to total required contributions for all employers. As of June 30, 2017, the most recent measurement date, the State’s proportion for each cost-sharing plan and the change in proportion from the prior measurement date were as follows (in thousands):

State of Louisiana

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LASERS TRSL LSERS DARS LCCRRF ROVERS

Proportion (amount) of net pension liability $5,639,645 $445,342 $1,918 $12,448 $12,964 $16,090

Proportion (%) of net pension liability 80.12% 4.34% 0.30% 46.15% 8.57% 73.30%

Increase/(Decrease) from prior measurement date .40% 0.18% 0.03% (.22%) 0.04% (0.85%)

Since the measurement date of the net pension liability was June 30, 2017, the net pension liability is based upon fiduciary net position for each of the plans as of June 30, 2017. Detailed information about each pension plan’s assets, deferred outflows, deferred inflows, and fiduciary net position that was used in the measurement of the State’s net pension liability is available in the separately issued plan financial reports for fiscal year 2017. These reports are available as follows:

LASERS -https://www.lla.la.gov/PublicReports.nsf/97BC27808ED6DC3A862581B50079961B/$FILE/000165FE.pdf LSPRS – https://www.lla.la.gov/PublicReports.nsf/0694B494A934EAB3862581B500799767/$FILE/00016601.pdf TRSL - https://www.lla.la.gov/PublicReports.nsf/717ED2BF728CEC07862581B600541E5F/$FILE/00016608.pdf LSERS - https://www.lla.la.gov/PublicReports.nsf/FEC4B06753453691862581AF005A730B/$FILE/0001656A.pdf DARS - https://www.lla.la.gov/PublicReports.nsf/51548016585541E78625821200536660/$FILE/0001718E.pdf LCCRRF - https://www.lla.la.gov/PublicReports.nsf/AF631C741F40DBCA862581FC00630F55/$FILE/00016E2D.pdf ROVERS - https://www.lla.la.gov/PublicReports.nsf/9C34BAE3060396888625821200536714/$FILE/0001718D.pdf

The following table presents the changes in the State’s net pension liability for the year ended June 30, 2018 (in thousands):

LASERS LSPRS TRSL LSERS DARS LCCRRF ROVERS TotalTotal pension liability: Service cost $ 175,848 $ 22,006 $ 20,269 $ 147 $ 5,594 $ 1,219 $ 2,281 $ 227,364 Interest 1,126,376 70,440 96,566 529 12,671 4,266 5,599 1,316,447 Changes in State's proportionate

share 31,215 -- 21,257 204 (43) 66 (241) 52,458 Differences between expected and

actual experience (111,456) 6,703 (9,696) (66) (829) 339 (2,667) (117,672) Changes in assumptions 33,420 214 5,870 60 5,215 1,932 46,711 Benefit payments (1,021,123) (43,543) (91,713) (549) (8,949) (3,360) (4,545) (1,173,782)Net change in total pension liability 234,280 55,820 42,553 325 13,659 2,530 2,359 351,526Total pension liability - beginning 14,668,409 1,006,626 1,240,857 6,883 185,940 59,816 79,508 17,248,039Total pension liability - ending $ 14,902,689 $ 1,062,446 $ 1,283,410 $ 7,208 $ 199,599 $ 62,346 $ 81,867 $ 17,599,565

Plan fiduciary net position : Contributions - employer $ 541,290 $ 48,556 $ 48,752 $ 236 $ 2,245 $ 1,469 $ 2,019 $ 644,567 Contributions - employee 120,128 7,184 14,272 65 -- 583 647 142,879 Contributions - nonemployer contributing entities -- -- 1,684 -- 3,793 917 2,073 8,467 Net investment income 1,218,334 98,946 113,475 717 13,028 5,807 7,331 1,457,638 Benefit payments (1,021,123) (43,543) (91,713) (549) (8,949) (3,360) (4,545) (1,173,782) Other (3,595) 1,006 (661) (5) (28) (64) (216) (3,563)Net change in fiduciary net position 855,034 112,149 85,809 464 10,089 5,352 7,309 1,076,206

Plan fiduciary net position - beginning 8,408,010 670,423 752,259 4,826 177,062 44,030 58,468 10,115,078Plan fiduciary net position - ending $ 9,263,044 $ 782,572 $ 838,068 $ 5,290 $ 187,151 $ 49,382 $ 65,777 $ 11,191,284

State's net pension liability $ 5,639,645 $ 279,874 $ 445,342 $ 1,918 $ 12,448 $ 12,964 $ 16,090 $ 6,408,281

Actuarial Assumptions

The following table provides information concerning actuarial assumptions used in the determination of the total pension liability for each of the defined benefit plans in which the primary government is a participating employer:

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LASERS LSPRS TRSL LSERS DARS LCCRRF ROVERS ROVERS

Date of the experience study on which significant assumptions are based

2009 - 2013 2008 – 2012 2008 – 2012 2008 - 2012 7/1/09 – 6/30/14

7/1/09 – 6/30/14

7/1/09 - 6/30/14

Projected salary increases 2.8% - 14.3% 4% - 16.5% 3.5% - 10.0% 3.075% - 5.375% 5.5% 5.0% 6.0%

Inflation rate 2.75% 2.50% 2.5% 2.625%

2.5% 2.50% 2.50%

Projected benefit changes Including COLAs

None None None None None None None

Source of mortality assumptions

(1) & (2) (3) & (4) (5) & (2) (8) & (6) (9) & (10) (7)(10) & (11)

(7)(10) & (11)

(1) RP-2000 Combined Healthy Table with mortality improvements projected through 2015 using Scale AA(2) RP-2000 Disability Table with no projection of mortality improvement for disabled annuitants(3) RP-2000 Sex Distinct Mortality Table with mortality improvements projected to 2025(4) RP-2000 Disabled Lives Mortality Tables for Males and Females(5) RP-2000 Mortality Table with mortality improvement projected through 2025 using Scale AA(6) RP-2000 Combined Healthy Sex Distinct Mortality Tables(7) RP-2000 Employee Table set back 4 years for males and 3 years for females(8) RP-2000 Disabled Lives Mortality Tables for Males and Females(9) RP-2000 Combined Healthy with White Collar Adjustment Sex Distinct Tables projected to 2032 (Female Table set back 1 year)

(10) RP-2000 Disabled Lives Mortality Tables set back 5 years for males and 3 years for females(11) RP-2000 Healthy Annuitant Table set forward 1 year for males and projected to 2030 for males and females

Discount Rate

The discount rate used to measure the State’s total pension liability for each plan and the significant assumptions used in the determination of the discount rate for each plan are included below:

LASERS LSPRS TRSL LSERS DARS LCCRRF ROVERS

Discount Rate 7.70% 7.0% 7.70% 7.125% 6.75% 7.00% 6.75%

Change in Discount Rate from Prior Valuation

(.05%)

-- (.05%)

-- (.25%) -- (.25%)

*Plan Cash Flow Assumption

(1) (1) (1) (1) (1) (1) (1)

Rates Incorporated in the Discount Rate:

Long-term Rate of Return 7.70% 7.0% 7.70% 7.125% 6.75% 7.00% 6.75%

Period Applied All periods All periods All periods All periods All periods All periods All periods

Municipal Bond Rate N/A N/A N/A N/A N/A N/A N/A

Sensitivity of the Net Pension Liability to Changes in the Discount Rate (in thousands):

Net Pension Liability $5,639,645 $279,874 $445,342 $1,918 $12,448 $12,964 $16,090

Net Pension Liability Assuming a Decrease of 1% in the Discount Rate

$7,079,935 $407,914 $573,833 $2,629 $35,572 $19,839 $24,594

Net Pension Liability/ (Asset) Assuming an Increase of 1% in the Discount Rate

$4,415,057 $173,109 $336,038 $1,307 $(7,202) $7,125 $8,772

*Plan Cash Flow Assumption:1) Plan member contributions will be made at the current contributions rates and sponsor contributions will be made at the actuarially determined rates.

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The discount rates used to measure the total pension liabilities for the defined benefit pension plans administered by each system is equal to the long-term expected rate of return (disclosed in the table above) on pension plan investments that are expected to be used to finance the payment of benefits. For LASERS, TRSL, DARS, LCCRRF and ROVERS the long-term expected rate of return for each plan was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expenses and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation and an adjustment for the effect of rebalancing/diversification. For LSPRS the rate was developed from a combination of the plan’s investment consultant’s capital market assumptions and those from other consultants participating in the Horizon Actuarial Consultants “Survey of Capital Market Assumptions” considering a) the long-term economic forecast for inflation is projected to be 2.5% and b) investment management expenses adjust the gross rate by 25 basis points and are considered an offset in the development of the discount rate.” For LSERS the rate was determined using a triangulation method which integrated the Capital Asset Pricing Model (CAPM), a treasury yield curve approach, and an equity building block model. Risk return and correlations were projected on a forward-looking basis in equilibrium in which best estimates of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These rates are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation and an adjustment for the effect of rebalancing/diversification.

The target allocation and best estimates of arithmetic/geometric real rates of return for each major asset class are summarized for each plan in the following table:

LASERS** LSPRS** TRSL*

Asset ClassTarget

Allocation

Long-term Expected Real Rate of Return

Target Allocation


Target Allocation


Cash -- -.24% 2.50% -.30%

Domestic Equity 25% 4.31% 40.0% 5.10% 27.0% 4.28%

Developed International Equity 32% 5.35% 12.5% 7.0% 19.0% 4.96%

Fixed Income

Domestic Fixed Income 8% 1.73% 17.0% 1.7% 13.0% 1.98%

International Fixed Income 6% 2.49% 3.0% 1.2% 5.5% 2.75%

Equity Investments -- -- -- -- -- --

Emerging Market Equity Investments -- -- 7.5% 6.4% -- --

Alternative Investments 22% 7.41% 17.5% 5.53% 35.5% 7.07%

Global Tactical Asset Allocation 7% 2.84%Real Assets -- -- -- -- -- --

Total 100% 100% 100%

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LSERS* DARS* LCCRRF** ROVERS*

Asset ClassTarget

Allocation


Target Allocation


TargetAllocation


Target Allocation


Cash -- -- .48% .50% -- -- -- --

Domestic Equity 20.0% 6.44% -- -- 28.0% 5.19% 40.0% 3.00%

Developed International Equity 21.0% 7.16% -- -- 20.5% 5.25% 15.0% 1.28%

Fixed Income 30.0% 2.84% 28.95% 6.84% 20.0% 2.125% -- --

Domestic Fixed Income -- -- -- --

-- --20.0% .50%

International Fixed Income -- -- -- -- -- -- 10.0% .35%

Equity Investments -- -- 61.72% 11.31% -- -- -- --

Emerging Market Equity Investments 10.0% 9.42% -- -- 6.5% 7.25% -- --

Alternative Investments 13.0% 6.82% 8.85% 10.50% 15.0% 4.33% 5.0% .31%

Real Assets 6.0% 7.49% -- -- 10.0% 4.5% 10.0% .45%

Total 100% 100% 100% 100%

* Arithmetic real rates of return ** Geometric real rates of return

Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to PensionsChanges in the net pension liability may either be reported in pension expense in the year the change occurred or recognized as a deferred outflow of resources or a deferred inflow of resources in the year the change occurred and amortized into pension expense over a number of years. For the year ended June 30, 2018 the State recognized $651,081 (in thousands) in pension expense related to all defined benefit plans in which it participates. TRSL, DARS, LCCRRF and ROVERS recognized revenues in the amount of $8,467 (in thousands) in ad valorem taxes collected from non-employee contributing entities. At June 30, 2018 the State reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources (in thousands):

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Deferred Outflows of Resources

Deferred Inflows of Resources

Differences between expected and actual experience in the measurement of the total pension liability $53,811 $124,768Changes in assumptions or other inputs $34,851 $2,019Net difference between projected and actual earnings on pension plan investments $190,339 19,446

Changes in proportion and differences between State contributions and proportionate share of contributions (cost-sharing plans only) $235,767 $208,646Employer contributions to the pension plans subsequent to the measurement date of the net pension liability $679,394 --

Total $1,194,162 $354,879

The $679,394 (in thousands) of deferred outflows of resources resulting from the employer contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability during the year ending June 30, 2019. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions to be recognized in pension expense are as follows (in thousands):

Year ended June 30:

Net Amount Recognized in

Pension Expense

2019 $(6,034)

2020 $211,637

2021 $87,559

2022 $(133,553)

2023

$(22)

Thereafter $302

NOTE 6A: EMPLOYEE BENEFITS - OTHER POSTEMPLOYMENT BENEFITS (OPEB)

A. STATE OF LOUISIANA POST-RETIREMENT BENEFIT PLAN

Plan Description

The Office of Group Benefits (OGB) administers the State of Louisiana Post-Retirement Benefit Plan –– a multiple-employer defined benefit other post-employment benefit plan. There are no assets accumulated in a trust that meets the criteria of paragraph 4 of GASB Statement 75.

The plan provides medical, prescription drug and life insurance benefits to retirees, disabled retirees, and their eligible beneficiaries through premium subsidies. Current employees who participate in an OGB health plan while active are eligible for plan benefits if they are enrolled in the OGB health plan immediately before the date of retirement and retire under one of the state retirement systems (LASERS, LSPRS, TRSL, or LSERS) or they retire from a participating employer that meets the qualifications in the Louisiana Administrative Code 32:3.303.

Louisiana Revised Statute 42:801-883 assigns the authority to establish and amend the benefit provisions of the plan to the state legislature. LRS 42:802, 42:821, and 42:851 provides the authority under which the obligations of the plan members, employers, and other contributing entities that contribute to the plan are established or may be amended.

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A summary of members participating in the plan at June 30, 2018 is as follows:

Plan MembershipRetirees and beneficiaries currently receiving benefit payments 45,536Active plan members 46,205

Total 91,741

OGB offers retirees four self-insured healthcare plans and one fully insured plan. Retired employees who have Medicare Part A and Part B coverage also have access to four fully insured Medicare Advantage plans, which include three Vantage HMO plans and one Peoples Health HMO.

Employer contributions are based on plan premiums and the employer contribution percentage. This percentage is based on the date of participation in an OGB plan (before or after January 1, 2002) and employee years of service at retirement. Employees who begin participation or rejoin the plan before January 1, 2002 pay approximately 25% of the cost of coverage (except single retirees under age 65 who pay approximately 25% of the active employee cost). For those beginning participation or rejoining on or after January 1, 2002, the percentage of premiums contributed by the employer is based on the following schedule:

OGB ParticipationEmployer Contribution

PercentageRetiree Contribution

PercentageUnder 10 years 19% 81%10-14 years 38% 62%15-19 years 56% 44%20+ years 75% 25%

In addition to healthcare benefits, retirees may elect to receive life insurance benefits. Basic and supplemental life insurance is available for the individual retirees and spouses of retirees subject to maximum values. Employers pay approximately 50% of monthly premiums for individual retirees. The retiree is responsible for 100% of the premium for dependents.

The plan does not issue a stand-alone financial report.

Funding Policy

The plan is funded on a “pay-as-you-go basis” under which the contributions to the plan are generally made at about the same time and in about the same amount as benefit payments become due.

Total OPEB Liability

The total OPEB liability of the OGB Plan of $8,638,989,403 was measured as of July 1, 2017, and was determined by an actuarial valuation as of that date.

Actuarial assumptions and other inputs. The total OPEB liability in the July 1, 2017 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified:

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Inflation 2.80 percent

Salary increases Consistent with the pension valuation assumptions.

Discount rate 3.13 percent based on the June 30, 2017 S&P 20-year municipal bond index rate

Healthcare cost trend rates Post-Medicare: 5.5 percent for 2018 - 2020, thereafter decreasing 0.25 percent per year through 2024, to an ultimate rate of 4.5 percent for 2024 and later yearsPre-Medicare: 7% grading down by .25% each year, beginning in 2020-2021, to an ultimate rate of 4.5% in 2029

Retirees’ share of benefit-related costs

Actuarial cost method

Estimated Remaining Service Lives

Expected per capita costs based on medical and prescription drug claims for retired participants for the period January 1, 2016 through December 31, 2017. Claims experience was trended to the valuation date.

Entry Age Normal, level percentage of pay

4.48

For healthy lives the RP-2014 Combined Healthy Mortality Table, projected on a fully generational basis by Mortality Improvement Scale MP-2017 was used. For existing disabled lives, the RP-2014 Disabled Retiree Mortality Table, projected on a fully generational basis by Mortality Improvement Scale MP-2017 was used.

The actuarial assumptions used by the pension plans covering the same participants were used for the retirement, termination, disability, and salary scale assumptions.

Changes in the Total OPEB Liability of OGB Benefit Plan:

TOTAL OPEB LIABILITY Primary ComponentGovernment Units

Balance at 6/30/17, restated $ 6,626,454,373 $ 2,392,451,145Changes for the year: Service cost $ 179,829,873 $ 64,926,756 Interest 181,639,942 65,580,273 Differences in expected and actual benefit

payments (2,363,465) 2,866,612 Differences between expected and actual

experience -- -- Changes in assumptions or other inputs (431,802,792) (155,900,429) Benefit payments (206,439,069) (78,253,816) Net changes (279,135,511) (100,780,604)

Balance at 6/30/18 $ 6,347,318,862 $ 2,291,670,541

Changes of assumptions and other inputs reflect a change in the discount rate from 2.71 percent in 2016 to 3.13 percent in 2017.

Sensitivity of the total OPEB liability to changes in the discount rate. The following presents the total OPEB liability of the OGB Plan, as well as what the total OPEB liability would be if it were calculated using a discount rate that is 1-perentage-point lower (2.13 percent) or 1-percentage-point higher (4.13 percent) than the current discount rate:

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OGB Plan

1% Decrease Discount Rate(3.13%)

1% Increase

Primary Government $7,453,028,961 $6,347,318,862 $5,475,032,197Component Units $2,690,882,132 $2,291,670,541 $1,976,735,417

Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates. The following presents the total OPEB liability of the OGB Plan, as well as what the total OPEB liability would be if it were calculated using health care cost trend rates that are 1-percentage-point lower (6 percent decreasing to 3.5 percent) or 1-percentage-point higher (8 percent decreasing to 5.5 percent) than the current healthcare cost trend rates:

Total OPEB LiabilityOGB Plan

1% Decrease Healthcare Cost Trend Rates

(7% decreasing to 4.5%)

1% Increase

Primary Government $5,470,744,302 $6,347,318,862 $7,470,411,478Component Units $1,975,187,292 $2,291,670,541 $2,697,158,011

B. LSU HEALTH PLAN

Plan Description

The Louisiana State University System (LSU System), a discretely presented component unit of the State, offers its eligible employees, retirees, and their beneficiaries the opportunity to participate in one of two OPEB plans affording healthcare and life insurance. One offering is the State of Louisiana Post-Retirement Benefit Plan, which has already been discussed in this note, and the other is the LSU Health Plan (the Plan). The Plan is also offered to members of the State House of Representatives and the State Senate, its officers and staff, and the Legislative Budgetary Control Council which are primary government entities. Therefore, some participants of the Plan are currently employees of the primary government. Participation by primary government employees is limited and not material. Since participation in the Plan is only available to the primary government and its component units, the plan is identified as a single-employer defined benefit healthcare plan. There are no assets accumulated in a trust that meets the criteria of paragraph 4 of GASB Statement 75.

Benefit provisions are established or may be amended under the authority of LRS 42:851.

A summary of members participating in the plan at June 30, 2018 is as follows:

Retirees and beneficiaries currently receiving benefit payments 3,138Active plan members 7,196

Total 10,334

Employer contributions are based on plan premiums and the employer contribution percentage. This percentage is based on the date of participation in an OGB plan (before or after January 1, 2002) and employee years of service at retirement. Employees who begin participation or rejoin the plan before January 1, 2002 pay approximately 25% of the cost of coverage (except single retirees under age 65 who pay approximately 25% of the active employee cost). For those beginning participation or rejoining on or after January 1, 2002, the percentage of premiums contributed by the employer is based on the following schedule:

Health Plan Participation

Employer Contribution Percentage

Retiree Contribution Percentage

Under 10 years 19% 81%10-14 years 38% 62%15-19 years 56% 44%20+ years 75% 25%

The Plan does not issue a stand-alone financial report.

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Funding Policy

The plan is financed on a pay-as-you-go basis under which the contributions to the plan are generally made at about the same time and in about the same amount as benefit payments become due. The pay-as-you-go expense is the net expected cost of providing retiree benefits. This expense includes all expected claims and related expenses and is offset by retiree contributions.


The total OPEB liability of the LSU Plan of $975,667,502 was measured as of June 30, 2018, and was determined by an actuarial valuation as of January 1, 2018. Update procedures were used to roll forward the total pension liability to the measurement date.

Actuarial assumptions and other inputs. The total OPEB liability in the actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified:

Inflation 2.8 percent

Salary increases 2.0 percent, average, including inflation

Discount rate The discount rate was based on Bond Buyer 20-Bond GO Index.

3.9 percent

Healthcare cost trend rates

Mortality Rates

Actuarial cost method

Estimated Remaining Service Lives

Post-Medicare: 5.5 percent for 2018, thereafter decreasing 0.5 percent per year through 2020, to an ultimate rate of 4.5 percent for 2020 and later yearsPre-Medicare: 6.5 percent for 2018, thereafter decreasing 0.5 percent per year through 2022, to an ultimate rate of 4.5 percent for 2022 and later years

Non-Disabled Lives: RP-2014 trended back to 2006 using scale MP-14 and projected generationally using scale MP_17, applied on a gender-specific basisDisabled Lives: RP-2014 Disabled Retiree Generational Table trended back to 2006 and scaled forward using scale MP-18, applied on a gender specific basis

Entry Age Normal, level percentage of pay

6.7

The actuarial assumptions used in the valuation were based on the results of an actuarial experience study for the period January 1, 2016 – December 31, 2017.

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Changes in the Total OPEB Liability of the LSU Plan:

Primary ComponentGovernment Units

Balance at 6/30/17, restated $ 84,553,805 $ 924,767,450Changes for the year: Service cost $ 2,921,730 $ 18,585,439 Interest 3,475,837 36,403,454 Changes of benefit terms (1,886,135) (18,075,141) Differences between expected and actual

experience -- -- Changes in assumptions or other inputs (5,392,291) (53,121,346) Benefit payments (946,348) (15,618,952) Net changes (1,827,207) (31,826,546)

Balance at 6/30/18 $ 82,726,598 $ 892,940,904

Changes of assumptions and other inputs primarily reflect a change in the discount rate from 3.58 percent in 2017 to 3.90 percent in 2018.

Sensitivity of the total OPEB liability to changes in the discount rate. The following presents the total OPEB liability of the LSU Plan, as well as what the total OPEB liability would be if it were calculated using a discount rate that is 1-perentage-point lower or 1-percentage-point higher than the current discount rate:

Total OPEB LiabilityLSU Plan

1% Decrease Discount Rate(3.9%)

1% Increase

Primary Government $100,403,215 $82,726,598 $69,159,822Component Units $1,083,740,179 $892,940,904 $746,502,761

Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates. The following presents the total OPEB liability of the LSU Plan, as well as what the total OPEB liability would be if it were calculated using health care cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates:

Total OPEB LiabilityLSU Plan

1% Decrease Healthcare Cost Trend Rates(6.5% decreasing to 4.5%)

1% Increase

Primary Government $69,461,418 $82,726,598 $99,601,529Component Units $749,758,162 $892,940,904 $1,075,086,870

C. OPEB EXPENSE AND DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF RESOURCES RELATED TO OPEB

For the year ended June 30, 2018 the State recognized total OPEB expense of $268,264,260 and $125,332,338 for the primary government and component units, respectively. Deferred outflows of resources for employer benefit payments made subsequent to the measurement date in the OGB plan for $283,428,259 will be recognized as a reduction of total OPEB liability during the year ending June 30, 2019. At June 30, 2018, the State reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following resources:

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Primary Government

Component Units

Deferred Outflows of ResourcesDifferences between benefit payments allocated by the

proportionate share and actual benefit payments $19,964,130 $8,048,401 Employer OPEB benefit payments made subsequent to the

measurement date of the total OPEB liability 203,448,046 79,980,213 Total $223,412,176 $88,028,614

Deferred Inflows of ResourcesDifferences between benefit payments allocated by the

proportionate share and actual benefit payments $ (21,800,036) $ (5,435,009)Changes of assumptions or other inputs (340,005,656) (166,293,463)

Total $(361,805,692) $(171,728,472)

Amounts reported by the State as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Year ended June 30:

Net Amount Recognized in OPEB Expense

Primary Government

Component Units

2019 $(97,716,986) $(42,088,433)2020 $(97,716,986) $(42,088,433)2021 $(97,716,986) $(42,088,433)2022 $(47,322,689) $(24,325,585)2023 $ (804,875) $ (7,929,109)Thereafter $ (563,040) $ (5,160,078)

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NOTE 7: LEASES

A. LEASE AGREEMENTS

The State of Louisiana has entered into numerous operating and capital lease agreements for equipment, land, and buildings. Most leases contain non-appropriation exculpatory clauses that allow lease cancellation if the Louisiana Legislature does not make an appropriation for their continuation during any future fiscal period. Because legislative appropriation is reasonably assured, all leases contracted by the state are included in the schedules below.

B. OPERATING LEASES

Operating lease payments are recorded as expenses in the accompanying financial statements. Operating lease expenses for the primary government totaled (expressed in thousands) $57,689 for the fiscal year ended June 30, 2018. Commitments of the primary government under operating lease agreements for equipment, land, and buildings provide for future annual rental payments as follows (expressed in thousands):

Fiscal YearBuildings/

Office Space Equipment Land Total2019 $ 43,575 $ 3,674 $ 84 $ 47,3332020 25,601 2,143 81 27,8252021 20,684 2,133 79 22,8962022 17,161 1,804 43 19,0082023 14,097 1,658 1 15,756

2024-2028 47,240 8,163 5 55,4082029-2033 36,937 8,278 2 45,2172034-2038 33,560 7,466 2 41,0282039-2043 33,561 7,515 2 41,078

Total $ 272,416 $ 42,834 $ 299 $ 315,549

C. CAPITAL LEASES AND INSTALLMENT PURCHASE AGREEMENTS

Capital lease obligations are payable from resources of the governmental and proprietary funds. The following is a schedule of future minimum payments remaining under contracts in existence at June 30, 2018 (expressed in thousands):

The gross amount of the leased assets at June 30, 2018 (expressed in thousands) for business-type activities is $4,395 for buildings and office space.

Governmental Business-TypeFiscal Year Activities Activities

2019 $ -- $ 1922020 -- 2812021 -- 2852022 -- 2842023 -- 281

2024-2028 -- 1,4022029-2033 -- 559

Subtotal -- 3,284Less interest and executory costs -- 719Present value of minimum lease Payments $ -- $ 2,565

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Total capital leases by asset classes include the following (expressed in thousands):


Business-Type Activities

Buildings/Office Space $ -- $ 3,284Equipment -- --Land -- --Other -- --

Total Capital Leases $ -- $ 3,284

D. LESSOR LEASES

Various property and facilities are leased to outside parties including port authorities, levee districts, universities, and various other entities. The lease revenues (expressed in thousands) were $1,586 for the primary government and $5,581 for business-type activities for the fiscal year ending June 30, 2018.

The value of the property carried on the financial reports for the entities included below (expressed in thousands) is $533 for land, $35,390 for buildings and office space and $6 for equipment. Accumulated depreciation on the buildings and equipment totaled $16,729.

OPERATING LEASES

The following is a schedule by years of minimum future rentals on operating leases as of June 30, 2018 (expressed in thousands):

NOTE 8: LONG-TERM OBLIGATIONS

A. DEBT AUTHORIZATION AND LIMITATIONS

The Louisiana Constitution of 1974 provides that the State shall have no power, directly or indirectly, through any board, agency, commission, or otherwise, to incur debt or issue bonds except by law enacted by two-thirds of the elected members of each house of the Legislature. LRS 39:1365(25) limits the legislative authorization of general obligation bonds and other general obligations secured by the full faith and credit of the State by prohibiting total authorized bonds from exceeding an amount equal to two times the average annual revenues of the Bond Security and Redemption Fund for the last three fiscal years prior to such authorization. The bond authorization limitation is $27,482,964,000. The total general obligation bonds authorized are $3,413,625,000 at June 30, 2018, or 12.42% of the bond authorization limit.

Governmental Business-TypeFiscal Year Activities Activities

2019 $ 1,589 $ 4,9582020 120 3,2542021 120 3,1602022 120 3,2412023 120 3,211

2024-2028 581 9,3192029-2033 567 2402034-2038 567 2402039-2043 567 240

Total $ 4,351 $ 27,863

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LRS 39:1402(D) limits issuance by the Louisiana State Bond Commission of general obligation bonds or other general obligations secured by the full faith and credit of the State. The highest annual debt service requirement for the current or any subsequent fiscal years for general obligation debt, including the debt service on any bonds or other obligations that are proposed to be sold by the Louisiana State Bond Commission, may not exceed 10% of the average annual revenues of the Bond Security and Redemption Fund for the last three fiscal years completed prior to the issuance being proposed. The general obligation debt issuance limitation is $1,374,148,000. At June 30, 2018, the highest current or future annual general obligation debt service requirement is $368,626,000, which represents 26.83% of the debt issuance limitation.

LRS 39:1367, enacted pursuant to a constitutional amendment, prohibits the issuance of net state tax-supported debt if the amount which is to be expended for servicing such outstanding debt exceeds 6% of the estimate of money to be received by the state general fund and dedicated funds for each respective fiscal year as contained in the official forecast adopted by the Revenue Estimating Conference at its first meeting after the beginning of each fiscal year.

Debt service included in the net state tax-supported debt limitation provided in LRS 39:1367 differs from the debt service expenditures reported in the accompanying financial statements. These differences are as follows:

The State has entered into various cooperative endeavor agreements with various issuing governments whereby the State requests the Legislature to appropriate funds sufficient to pay the annual debt service requirements of the issuers’ bonds. The Legislature is not obligated to appropriate these funds and there is no recourse to the State in the event of non-appropriation. Since the State is not the issuer of the bonds and has the discretion to avoid the expenditure of State resources through non-appropriation, these bonds are not reported as liabilities in the accompanying financial statements. Payments for principal and interest made pursuant to the annual appropriations act for these bonds are reported as grant expenditures rather than debt service expenditures in the accompanying financial statements. Total payments on these bonds during fiscal year 2018 totaled $36,829,538.

On July 12, 2006, in response to the need to assist local political subdivisions as the result of Hurricanes Katrina and Rita, the State Bond Commission, on behalf of the State of Louisiana, issued General Obligation Gulf Tax Credit Bonds, Series 2006A and General Obligation Match Bonds, Series 2006B in the amounts of $200 million and $194.475 million, respectively, for the purpose of providing loans to assist in the payment of debt service on certain bonds, notes, certificates of indebtedness or other written obligations of local political subdivisions of the State and to pay debt service on general obligation bonds of the State, under a debt payment assistance program authorized by the Gulf Opportunity Zone Act of 2005 and by Act 41 of the 2006 First Extraordinary Session of the Legislature. The bonds have been subsequently refunded several times. The debt service on these bonds are excluded from the net state tax-supported debt calculation. Debt service expenditures during fiscal year 2018 for these bonds were $54,389,462.

In fiscal year 2001 the State, through the Tobacco Settlement Financing Corporation, issued bonds to access future tobacco settlement revenues received pursuant to the Master Settlement Agreement. While the bonds and related debt service expenditures are included in the accompanying financial statements, the bonds are not considered net state tax-supported debt. Debt service expenditures during fiscal year 2018 for these bonds were $95,325,363.

The maximum amount of net State tax-supported debt allowed by statute for fiscal year 2017-2018 was $726,612,000. During the fiscal year 2017-2018, the total net State tax-supported debt paid was $659,078,124 or 5.44% of the estimated General Fund and dedicated funds’ revenues established by the Revenue Estimating Conference.

B. AUTHORIZED BUT UNISSUED DEBT

The Omnibus Bond Authorization Act of 2018 provides for the repeal of all acts authorizing the issuance of general obligation bonds, except for any act authorizing issuance of refunding bonds and Act 41 of the 2006 First Extraordinary Session. Act 41 authorized the sale of bonds to provide relief to political subdivisions of the state affected by natural catastrophes. The Omnibus Bond Authorization Act requires the legislature to annually repeal the issuance of general obligation bond authorizations for projects that are no longer found feasible or desirable, to reauthorize general obligation bonds for projects deemed to be essential, and to authorize new projects. As a result, there were no authorized but unissued general obligation bonds outstanding at June 30, 2018.

C. PURPOSE AND RETIREMENT OF GENERAL OBLIGATION BONDS

General obligation bonds are authorized and issued primarily to provide funds for constructing and improving various facilities including ports, university facilities, public schools, parks, bridges, roads, and charity hospitals. General obligation bonds are backed by the full faith, credit, and taxing power of the State.

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D. LONG-TERM OBLIGATIONS OUTSTANDING AT JUNE 30, 2018

Long-term obligations outstanding at June 30, 2018, principal only, are as follows (expressed in thousands):

Long-Term Obligations Beginning Balance Additions Deletions Ending

BalanceDue Within One Year Interest Rates

GOVERNMENTAL ACTIVITIES: General obligation bonds payable $ 3,565,590 $ 300,090 $ 259,400 $ 3,606,280 $ 265,950 1.087 - 5.00% Other bonds payable by Agency:

Louisiana Correctional Facilities Corporation 10,596 -- 2,506 8,090 2,562 2.88 - 5.00%Department of Corrections 22,975 -- 1,781 21,194 1,824 4.62 - 4.87%Office Facilities Corporation 100,760 -- 23,320 77,440 24,460 2.50 - 5.00%Public Safety LPFA 23,555 14,485 23,555 14,485 4,365 4.00%Tobacco Settlement Financing Corporation 527,430 -- 67,880 459,550 26,575 5.00 - 5.50%State Highway Improvement 256,285 -- 10,210 246,075 10,695 4.00 - 5.00%Unclaimed Property Special Revenue Fund 175,520 -- 6,315 169,205 6,585 1.00 - 5.00%Transportation Infrastructure Model for Economic Development 2,609,230 582,470 628,470 2,563,230 29,985 variable

Total other bonds payable $ 3,726,351 $ 596,955 $ 764,037 $ 3,559,269 $ 107,051 Add/Subtract unamortized amounts:

Unamortized Premiums 647,035 98,954 85,157 660,832 53,381Total bonded debt $ 7,938,976 $ 995,999 $ 1,108,594 $ 7,826,381 $ 426,382 Other liabilities:

Compensated absences $ 198,732 $ 79,181 $ 82,938 $ 194,975 $ 15,429Notes payable * 5,247 10,989 2,618 13,618 4,595Contracts payable 5,611 3,096 -- 8,707 8,707Pollution remediation obligations * 19,125 14,302 8,484 24,943 11,419Estimated liability for claims 2,041,168 1,360,779 1,284,302 2,117,645 297,672Estimated liability for construction contracts * 1,459,310 69,812 -- 1,529,122 --Other long-term liabilities * 120,305 18,949 6,499 132,755 4,952

Total Other Liabilities * $ 3,849,498 $ 1,557,108 $ 1,384,841 $ 4,021,765 $ 342,774

*restated

BUSINESS-TYPE ACTIVITIES: Bonds payable:

Revenue bonds $ 580,540 $ 132,110 $ 163,675 $ 548,975 $ 19,455 1.875 - 5.00%Unamortized Discounts & Premiums 24,608 19,733 246 44,095 3

Total Bonds Payable $ 605,148 $ 151,843 $ 163,921 $ 593,070 $ 19,458 Other liabilities:

Compensated absences $ 20,896 $ 6,535 $ 6,048 $ 21,383 $ 1,791Capital lease obligations 2,745 -- 180 2,565 90Notes payable * 764 750 119 1,395 --Other long-term liabilities * 7,525 12 7,524 13 13Total Other Liabilities * $ 31,930 $ 7,297 $ 13,871 $ 25,356 $ 1,894

*restated

Note: Information about changes in the net pension liability and OBEP are contained in Note 6 and Note 6A, respectively.

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E. DEBT SERVICE REQUIREMENTS AT JUNE 30, 2018

Interest requirements for variable-rate debt are calculated using the rate in effect at the financial statement date. Annual principal and interest for bonds and notes are as follows (expressed in thousands):

Governmental ActivitiesBonds Payable Notes Payable Totals

Year: Principal Interest

Net Effect of

Derivatives Principal InterestTotal

Principal

Total Interest

Cost2019 $ 373,001 $ 311,835 $ 10,008 $ 4,596 $ 154 $ 377,597 $ 321,997

2020 379,215 297,716 10,036 2,931 97 382,146 307,849

2021 355,684 281,018 10,008 2,402 64 358,086 291,090

2022 353,717 264,122 10,008 2,225 35 355,942 274,165

2023 354,240 247,797 10,008 1,464 8 355,704 257,813

2024-28 1,579,363 1,005,767 49,910 -- -- 1,579,363 1,055,677

2029-33 1,624,445 638,113 48,527 -- -- 1,624,445 686,640

2034-38 1,145,940 308,234 45,316 -- -- 1,145,940 353,550

2039-43 904,210 110,954 35,646 -- -- 904,210 146,600

2044-48 95,734 6,422 -- -- -- 95,734 6,422

Total $ 7,165,549 $ 3,471,978 $ 229,467 $ 13,618 $ 358 $ 7,179,167 $ 3,701,803

Business-Type ActivitiesRevenue Bonds Notes Payable Total

Year: Principal Interest Principal Interest Principal Interest

2019 $ 19,455 $ 21,940 $ -- $ 60 $ 19,455 $ 22,000

2020 19,750 21,512 266 59 20,016 21,571

2021 20,190 20,997 136 56 20,326 21,053

2022 22,825 20,163 139 54 22,964 20,217

2023 23,855 19,080 141 51 23,996 19,131

2024-28 142,045 76,977 202 224 142,247 77,201

2029-33 80,000 51,865 208 158 80,208 52,023

2034-38 109,820 33,083 303 62 110,123 33,145

2039-43 75,440 9,516 -- -- 75,440 9,516

2044-48 35,595 1,408 -- -- 35,595 1,408

Total $ 548,975 $ 276,541 $ 1,395 $ 724 $ 550,370 $ 277,265

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F. DEFEASED BONDS

The following table details the principal balances of previously outstanding bonds considered defeased at June 30, 2018 (expressed in thousands). The defeased bonds are not included in the accompanying financial statements.

Bond SeriesDate

DefeasedMaturity

DateAmount

DefeasedOutstanding at June 30, 2018

Primary Government: General Obligation:

2009-A 11/14 05/19 91,460 $ 91,460 2011-A 11/14 09/20 99,095 99,095

2009-A 04/16 05/19 29,010 29,0102010-A 04/16 05/20 18,995 18,9952011-A 04/16 09/17 12,225 -0-2011-A 04/16 09/18 12,690 12,6902011-A 04/16 09/19 13,210 13,2102011-A 04/16 09/20 82,905 82,9052012-A 04/16 08/17 18,460 -0-2012-A 04/16 08/18 18,690 18,6902012-A 04/16 08/19 1,375 1,3752012-A 04/16 08/22 66,370 66,3702012-C 04/16 07/22 23,415 23,415

TIMED:2010-B 02/15 05/20 41,860 41,8602010-B 08/17 05/20 311,650 311,6502012-A 08/17 05/22 65,575 65,575

LCTCS:2009-B 10/17 10/19 45,280 45,280

2010 10/17 10/20 64,025 64,0252008 10/17 10/18 28,070 28,070

G. REFUNDING OF BONDS

Gasoline and Fuels Tax Revenue Refunding Bonds

On August 30, 2017, the State issued $358,095,000 of Gasoline and Fuels Tax Revenue Refunding Bonds Series 2017-B and C, with an interest rate of 4% to 5% and a premium of $56,499,113, to advance refund portions of the 2010 Series B in the amount of $311,650,000 and 2012 Series A-1 in the amount of $65,575,000. The net present value savings was $35,700,532.

On November 27, 2017, the State issued $224,375,000 of Gasoline and Fuels Tax Revenue Refunding Bonds Series 2017 D-1 and D-2, with a variable interest rate, to currently refund the 2013 Series B2 in the amount of $103,125,000 and 2014 Series A in the amount of $121,250,000. Series 2013-B2 and 2014-A were issued as Floating Rate Bonds with a stated maturity of May 1, 2043; however, they were both subject to mandatory redemption on May 1, 2018.

Louisiana Community and Technical College System

On October 24, 2017, Louisiana Local Government Environmental Facilities and Community Development Authority issued Series 2017 Revenue Refunding Bonds, for the Delta Campus Facilities Corporation Project, in the amount of $22,750,000 with interest rates of 3.641% to 5.00% and a premium of $3,284,129 and a transfer from Series 2008 Debt Service Reserve Fund of $3,673,196, to advance refund Series 2008 in the amount of $28,070,000. The present value savings was $7,295,373.

On October 24, 2017, Louisiana Local Government Environmental Facilities and Community Development Authority issued Series 2017 Revenue Refunding Bonds, for the LCTCS Act 391 Project, in the amount of $88,590,000 with interest rate of 5.00% and a premium of $17,452,828 and a transfer from prior Bonds Debt Service Reserve Fund of $13,819,356, to advance refund Series 2009-B in the amount of $45,280,000 and Series 2010 in the amount of $64,025,000. The present value savings was $22,840,136.

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Louisiana Public Facilities Authority (Department of Public Safety)

On October 19, 2017, Louisiana Public Facilities Authority Revenue Refund Bonds, Series 2017, was issued for the Department of Public Safety, in the par amount of $14,845,000, with an interest rate of 4.00%, and a transfer from prior issue Debt Service Reserve Fund of $1,875,236,72, a transfer from prior issue Debt Service Fund of $1,164,731.43, and a Reoffering Premium of $787,829,to current refund Series 2007 in the amount of $17,835,000. The present value savings was $992,123.62. H. CONDUIT DEBT

Revenue bonds were issued by the Louisiana Agricultural Finance Authority (LAFA), a proprietary entity, which constituted conduit debt outstanding at year-end totaling $85,066,133 which is currently in default. The authority and the State have no responsibility for the repayment of this debt, so it is not reflected in the accompanying financial statements.

I. OTHER GENERAL LONG-TERM OBLIGATIONS

The liability for compensated absences is described in detail in Note 1, Section C; the liability for capital leases is described in more detail in Note 7, Section C; the liability for claims and litigation is described in more detail in Note 9, Section B; the liability for OPEB is described in more detail in Note 6A; and the liability for pollution remediation is described in more detail in Note 9, Section F.

J. PLEDGED REVENUES


Motor Vehicle Registration and License Fees

In March 2013, the State issued State Highway Improvement Revenue Bonds Series 2013A maturing in 2033 in the amount of $85,400,000 and in February 2014, the state issued State Highway Improvement Revenue Bonds Series 2014A maturing in 2034 in the amount of $198,135,000. As of June 30, 2018, the outstanding maturities extend to 2034. The bonds are secured by and payable from annual motor vehicles registration and license fees or taxes for the registration and licensing of all vehicles and motor vehicles which are collected by the Department of Public Safety. Total motor vehicle registration and license fees available in fiscal year 2018 were $57,816,752. The principal and interest paid for the current year was $10,210,000 and $12,782,450. The total principal and interest remaining on the bonds is $246,075,000 and $114,981,000, respectively.

Office of Motor Vehicle Handling Fees

In October 2017, the Louisiana Public Facilities Authority (LPFA) issued Series 2017 Revenue Refunding bonds in the amount of $14,485,000 to refund the 2007 Revenue Refunding bonds on behalf of the Department of Public Safety and Corrections to obtain a lower interest rate. The refunded bonds were issued to acquire, construct, and equip a new Department of Public Safety Services complex and a new Joint Emergency Services Training Center complex. The refunding bonds are secured by an irrevocable pledge and dedication of the handling fees collected by the Office of Motor Vehicles through June 2022. The Department collected $17,933,580 during fiscal year ended June 30, 2018. The principal and interest paid for the current year was $5,720,000 and $1,005,701, respectively. The total principal and interest remaining on the bonds is $14,485,000 and $979,900.

Tobacco Settlement Revenues

The Tobacco Settlement Financing Corporation, a blended component unit, issued $659,745,000 of tobacco settlement asset-backed bonds on July 2, 2013. The revenue bonds were issued to provide up-front cash for a portion of the State’s allocation of tobacco settlement revenues (TSRs) to be received in perpetuity from participating cigarette manufacturers (PMs) pursuant to the Master Settlement Agreement (MSA). Security for the bonds consist of 60% of TSRs required to be paid to the State. The Corporation received pledged revenues of $93,042,699 for fiscal year 2018. The principal and interest paid for the current year was $67,880,000 and $27,445,363, respectively. The bonds, payable through 2035, have total principal and interest outstanding of $459,550,000 and $245,809,153, respectively.

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Gasoline and Motor Fuels Taxes and Special Fuels Taxes

The State has pledged gasoline and fuel taxes to service debt on outstanding gas and fuels tax revenue bonds. As of June 30, 2018, the outstanding maturities extend to 2045. Bond proceeds are to be used for financing the construction of highway and bridge projects. Revenues available in fiscal year 2018 for funding debt service due were $601,840,910. Principal and interest paid for the current year were $26,870,000 and $114,247,569, respectively. The total principal and interest remaining on the bonds is $2,563,230,000 and $1,978,510,898, respectively.

Unclaimed Property Special Revenue Bonds

In December 2013 the State issued $111,675,000 in Unclaimed Property Special Revenue Bonds, Series 2013, consisting of $90,595,000 for the I-49 North Project and $21,080,000 for the I-49 South Project and in September, 2015 the State issued $73,820,000 for the I-49 South Project. The purpose of these bonds are to match federal funds to be used by the Department of Transportation and Development for the costs of and associated with the construction of Interstate 49. Security for the bonds, which are payable through fiscal year 2036, consist of annual unclaimed property revenues that escheat to the General Fund. Unclaimed property cash receipts for the year were $47,424,602. The interest and principal paid in the current year was $6,315,000 and $8,512,894, respectively. The total principal and interest remaining on the bonds is $169,205,000 and $81,015,121, respectively.

Business-Type Activities

Lease Agreement

Louisiana Agricultural Finance Authority issued revenue bonds of $31,000,000 in 2007 to (i) renovate an office building, (ii) purchase new trucks, bulldozers, and other equipment for firefighting and other agricultural purposes, (iii) acquire, construct, and equip buildings and related facilities, and (iv) acquire emergency generators for the Department of Agriculture and Forestry. In December 2012, the authority issued refunding bonds Series 2012 (maturing in 2022) in the amount of $6,705,000 for the purpose of refunding a portion of the 2007 revenue bonds. The bonds are secured solely from income and revenues, and receipts derived or to be derived from payments made or collections obtained in a lease agreement and are payable through 2023. The lease requires the Department to pay from legally available funds, subject to annual appropriation by the Louisiana Legislature, all the amounts necessary to pay the annual debt service and administrative expenses. The principal and interest paid for the current year was $8,735,000 and $229,294, respectively. This bond has been paid in full.

Highway 1 Tolls

Louisiana Transportation Authority, a public corporation within the Department of Transportation and Development (DOTD), issued several series of toll revenue bonds in 2005 to finance a highway project in the lower portion of Lafourche Parish. The project creates elevated highways that run parallel to Highway 1, with a bridge over Bayou Lafourche. The 2005 series bonds were refunded in November 2013. The bonds are now backed by, in addition to toll revenues, a cooperative endeavor agreement that requires that appropriations sufficient to fund the annual debt service be included in the Executive Budget request. The monies were appropriated in fiscal year 2018 sufficient to pay the debt service; however, $4,930,987 was collected in toll revenues and used to reimburse the General Fund. Principal and interest paid during the current year was $855,000 and $5,364,876. The total principal and interest remaining on the bonds is $171,225,000 and $85,707,469, respectively. The bonds are payable through fiscal year 2046.

NOTE 9: CONTINGENCIES AND COMMITMENTS

RISK FINANCING AND INSURANCE RELATED ACTIVITIES

The State is exposed to various risks of loss related to torts and other litigation, damage and loss of property, business interruption and injuries to employees. The State is also exposed to risks related to the provision of health and life insurance to its employees. Exposure to these risks are largely self-funded due to the prohibitive costs of obtaining commercial insurance. In addition, the State provides insurance coverage to outside parties through the Workers Compensation Second Injury Program and the Motor Fuels Underground Storage Tank Program.

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The State maintains a comprehensive risk management program through the Office of Risk Management (ORM) to manage exposure to various risks including property loss and damage, general liability, automobile liability, medical malpractice, workers’ compensation, and business interruption. The State retains the risk of loss on all lines of business provided through ORM with the exception of property insurance. On property claims, the State retains risk of loss on the first $10 - $50 million and losses in excess of $250 – $350 million depending on the peril (fire, wind, flood, etc.). The State, through the Office of Group Benefits (OGB), also retains the risk of loss from several self-insured plans to provide health and life insurance benefits to plan participants. Although these insurance plans provide for a pooling of risk among several governmental entities, they are not considered a public entity risk pool because the State is the primary participant. Losses from risks not covered by ORM or OGB are fully self-insured. These risks include losses from various litigated claims including tort claims involving road defects and hazards and federal disallowed costs.

The State assumes risk of loss of participating employers and insurance companies to provide workers compensation benefits to employees that have sustained subsequent injury that qualify for workers compensation benefits. Claim payments are financed through premiums paid by participating employers and insurance companies. The State also assumes risk of loss of outside parties for remediation responsibilities for leaking underground motor fuel storage tanks. Costs of the program are financed through fees charged to owners of underground storage tanks based on the volume of fuel deliveries.

Changes during the year in liabilities related to the risks of loss retained by State and the risk of loss of others assumed by the State are as follows (expressed in thousands):

Beginning of Fiscal Year Liability

Claims and Changes in Estimates Claim Payments

Recoveries from Settled and

Unsettled Claims

Balance at Fiscal Year

End

2017-2018 $2,041,168 $1,360,779 ($1,155,982) ($128,320) $2,117,645

2016-2017 $2,226,659 $1,044,025 ($1,192,977) ($36,539) $2,041,168

A. RISK MANAGEMENT AND SELF INSURANCE

ORM pays claims via the Self-Insurance Fund which is reported in the General Fund. The Self-Insurance Fund consists of all premiums paid by State agencies under the State’s risk management program, the investment earnings thereon, and commissions retained.

For fiscal year 2018, the Self-Insurance Fund paid $141,438,876 to satisfy claims and judgments. At June 30, 2018, outstanding non-discounted reserve valuations of the open claims within the programs totaled $1,047,663,563. At June 30, 2018, ORM cash balances included $51,564,645 in the Self-Insurance Fund. ORM advises that the non-discounted liability reserve valuation for the claims in litigation against state agencies being handled by that office is valued at $218,394,244 at June 30, 2018.

The Office of Risk Management purchases annuities to settle portions of certain claims. Third-party trustees then make payments to the claimants. At June 30, 2018, there were 18 active annuities which do not contain the wording releasing the State from any future liability on the claims. The outstanding amount due on these annuities as of June 30, 2018 was $40,887,345.

The Future Medical Care Fund funds medical care that may be incurred subsequent to judgment rendered against the state. The present value of reserves, net of estimated recoveries, at June 30, 2018 was $19,802,828.

OGB pays all claim settlements and judgments through its Self-Insurance Fund which is reported in the General Fund. Claim expenditures and liabilities are reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. For fiscal year 2018, OGB paid $873,245,261 in claims and the liability at the end of the fiscal year was $50,525,868.

B. LITIGATION

The estimated probable future liability including incremental costs resulting from litigation, contract claims, and judgments against the State that are not being handled by ORM, not including contract claims reported by the Department of Transportation and Development (DOTD), is approximately $389,528,815 (accrued in the accompanying financial statements). In addition, as of June 30, 2018, there are claims against the State, not including contract claims reported by DOTD, totaling $248,361,472 for which it is reasonably possible that the State will incur liability. Nonincremental claims adjustment expenses have not been included as part of the liability for claims and judgments.

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From the beginning of fiscal year 2002-2003 to the present, the State’s Self-Insurance Fund has not been available as a source of funds to settle tort claims involving road defect allegations nor to pay final judgments in such matters. As a result, settlements and judgments in such road hazard tort claims have been and will continue to be funded and paid only through individual legislative appropriation. Since fiscal year 2002 the sum appropriated for such matters totaled approximately $227,022,803. No amounts were appropriated in fiscal year 2016, 2017, or 2018.

As of June 30, 2018, the Department of Transportation and Development (DOTD) advises that there are 526 expropriation cases pending with a total demand of $65,890,863. As payment of its estimate of just compensation upon filing of these suits, DOTD deposited $28,614,009 into the registry of the court. A reasonable possibility exists that DOTD will incur expropriation-related costs of $24,817,547 in excess of the just compensation on deposit with the courts. As of June 30, 2018, there were 25 outstanding inverse condemnation suits with an estimated demand of $11,042,466. DOTD has determined that it is reasonably possible that the actual settlements will total approximately $855,000. As of June 30, 2018, estimated demand for 14 contract construction suits is $46,142,393 and the estimated exposure is $35,042,393.

The Department of Revenue (DOR) has advised that the total amount of pending litigation affecting the DOR’s right to tax, where there is a probable likelihood that an asset has been impaired or a liability has been incurred as of fiscal year ended June 30, 2018, is $68,926,522 (accrued in the accompanying financial statements). The DOR has also advised that the total dollar amount of pending litigation affecting the DOR’s right to tax, where it is reasonably possible that an asset has been impaired or a liability has been incurred as of fiscal year ended June 30, 2018, is $59,076,953.

C. FEDERAL DISALLOWED COSTS

A significant amount of federal grant dollars is received by the State subject to financial and compliance audits mandated by the grantors. Questioned costs resulting from these audits may be disallowed by the Federal grantor and may become a liability of the State. Liabilities from disallowances and settlement agreements with the federal government are estimated to be $149,293,583 (accrued in the accompanying financial statements). In addition, as of June 30, 2018, there are disallowed costs of $17,035,486 for which it is reasonably possible that the State will incur liability.

D. WORKERS COMPENSATION

The Injured Worker Reemployment Program encourages employers to hire physically handicapped employees who have a permanent partial disability, by reimbursing the employer or, if insured, his or her insurance carrier for part of the workers’ compensation costs for on-the-job injuries. The estimated total future payments to be made for claims outstanding at June 30, 2018 were $311,382,669, which is included in the accompanying financial statements. Funds to make these payments will come from an annual assessment made against all insurance companies writing workers’ compensation insurance in the State and all employers that are self-insured.

E. UNDERGROUND STORAGE TANKS

The 445 Underground Storage Tanks (UST) sites are remediated under The Resource Conservation and Recovery Act (RCRA) Subtitle I and may be eligible for funding through the State’s Motor Fuels Underground Storage Tank Trust Fund or the U.S. EPA’s Leaking Underground Storage Tank (LUST) Trust Fund. The Underground Storage Tank Trust Fund is established by statute to collect fees from underground storage tank owners; fund assets are then used to finance remediation and/or removal of leaking storage tanks. Louisiana spent $12,341,555 assessing and remediating USTs in fiscal year ending June 30, 2018. The ending liability of $80,521,037 will be funded by the Motor Fuels Underground Storage Tank Trust Fund.

F. POLLUTION REMEDIATION

Louisiana is involved in various types of pollution and contamination remediation activities across the state. These activities include site assessments, site investigations, clean-up activities, and post-remediation monitoring. Remediation costs are usually funded by the Capital Outlay Escrow Fund through the Office of Facility Planning and Control or through the Department of Environmental Quality, which may obtain federal grants and state General Fund appropriations for such projects.

The current value of a remediation obligation liability is based on assumptions or expectations about future events that affect the measurement of the liability under the expected cash flow technique. However, the expectations are subject to change over time due to changes in technology, changes in applicable federal, state, and local laws or regulations, price increases or decreases, or changes in the remediation plan. In addition, the state seeks insurance recovery or the identification of potentially responsible parties to recover remediation costs. These recoveries may reduce costs of remediation when the recovery becomes recognizable or probable. Under specific circumstances, costs of remediation may be capitalized as part of a capital asset.

During the fiscal year, Louisiana spent $6,698,658 for pollution and contamination remediation activities and there were no costs received from responsible parties. At June 30, 2018, the State had a pollution remediation obligation of $24,942,899.

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G. COOPERATIVE ENDEAVORS

LRS 33:9022 defines “cooperative endeavor” as any form of economic development assistance between and among the State, its local governmental subdivisions, political corporations, public benefit corporations, the United States government or its agencies, or any public or private association, corporation, or individual. The term cooperative endeavor includes cooperative financing, cooperative development, or any form of cooperative economic development activity. The State has entered into cooperative endeavor agreements with certain entities aimed at developing the economy of the State. The estimated amounts outstanding for governmental units as of June 30, 2018, which are not reflected on the accompanying financial reports, are as follows:

General funds $ 1,395,940,780Self-generated funds 30,106,178Statutorily dedicated funds 338,717,647General obligation bonds 141,031,798Federal funds 505,035,728Interagency transfers 1,374,979Other funds 132,692,666

Total $ 2,544,899,776

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NOTE 10: FUND BALANCE/NET POSITION DISCLOSURES

A. CLASSIFICATION OF FUND BALANCES

Classifications of fund balances comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. The following table enumerates the fund balance classifications by specific purpose (expressed in thousands).

General

Fund


Fund

Louisiana Education

Quality Trust Fund


Funds

Total Governmental

Funds Fund Balances

Nonspendable: Inventory $ 74,933 $ -- $ -- $ -- $ 74,933Prepaid Items 28,663 -- -- -- 28,663Permanent Fund Corpus -- -- 1,294,957 1,395,629 2,690,586

Restricted for: General Government:

Administration & Regulatory Oversight 63,919 -- -- -- 63,919Agriculture & Forestry Programs 605 -- -- -- 605Conservation & Environment Programs:

Coastal Protection & Restoration 168,092 -- -- -- 168,092Oilfield Site Restoration 24,358 -- -- -- 24,358Wildlife & Fisheries Conservation 145,032 -- -- -- 145,032Other Conservation & Environment Programs 5,670 -- -- -- 5,670Artificial Reef Development 18,607 -- -- -- 18,607

Budget Stabilization 321,070 -- -- -- 321,070Education Programs:

Minimum Foundation Progam 87,359 -- -- -- 87,359Other Education Programs 18,952 -- 130,650 97,327 246,929

Capital Projects -- -- -- 386,905 386,905Unemployment Compensation 47 -- -- -- 47Culture, Recreation, & Tourism Programs 917 -- -- 3,759 4,676Debt Service 26,134 4,145 -- 153,657 183,936Corrections Programs 70 -- -- -- 70Transportation & Development Programs 2,006 -- -- -- 2,006Economic Development Programs 2,665 -- -- -- 2,665Health & Welfare Programs:

State Medicaid Match 15,092 -- -- -- 15,092Other Health & Welfare Programs 18,677 -- -- 37,915 56,592

Military & Veterans Affairs Programs 21,339 -- -- -- 21,339Youth Programs 4,469 -- -- -- 4,469Workforce Support & Training Programs 4,724 -- -- -- 4,724

Committed for: General Government:

Administration & Regulatory Oversight 18,338 -- -- -- 18,338Legislative Branch 1 -- -- -- 1Grants to Local Governments 30,314 -- -- -- 30,314Group Benefits Program 278,823 -- -- -- 278,823Risk Management Program 36,494 -- -- -- 36,494

Economic Development Programs 49,875 -- -- -- 49,875Agriculture & Forestry Programs:

Forestry Productivity 7,811 -- -- -- 7,811Grain & Cotton Indemnity Program 4,976 -- -- -- 4,976Other Agriculture & Forestry Programs 6,441 -- -- -- 6,441

Capital Projects 150,452 150,036 -- -- 300,488Labor & Workforce Programs:

Workers' Compensation Administration 4,119 -- -- -- 4,119Workers' Compensation 2nd Injury Program 28,738 -- -- -- 28,738Incumbent Worker Training Program -- -- -- 26,600 26,600

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General

Fund


Fund

Louisiana Education

Quality Trust Fund


Funds

Total Governmental

Funds

Employment Security Administration -- -- -- 2,249 2,249Other Labor & Workforce Programs -- -- -- 10,170 10,170

Culture, Recreation, & Tourism Programs: State Park Improvements 12,480 -- -- -- 12,480Other Culture, Recreation, & Tourism Programs 1,156 -- -- 9,017 10,173

Transportation & Development Programs 7,708 -- -- -- 7,708Public Safety Programs:

Interoperability Communication Program 464 -- -- -- 464Motor Carrier Safety & Administration 6,149 -- -- -- 6,149Crime Victims' Reparation 3,760 -- -- -- 3,760Other Public Safety Programs 42,455 -- -- -- 42,455Telecommunications Tax Credits 7,805 -- -- -- 7,805

Health & Welfare Programs: State Medicaid Matching 10,610 -- -- -- 10,610Fraud Detection Programs 9,184 -- -- -- 9,184Telecommunications for the Deaf 1,622 -- -- -- 1,622Disability Affairs 41 -- -- -- 41Drug Abuse Education & Treatment 387 -- -- -- 387Other Health & Welfare Programs 40,485 -- -- -- 40,485

Employer Pension Contributions 452 -- -- -- 452Conservation & Environment Programs:

Administration 2,780 -- -- -- 2,780Coastal Protection & Restoration 2,120 -- -- -- 2,120Environmental Quality Programs 13,741 -- -- -- 13,741Pollution Remediation Programs 115,616 -- -- -- 115,616Wildlife & Fisheries Conservation 6,170 -- -- -- 6,170Natural Resource Restoration 67,805 -- -- -- 67,805Other Conservation & Environment Programs 120,707 -- -- -- 120,707

Education Programs: Earnings Enhancements on College Savings 19,743 -- -- -- 19,743Public Educator Salary Increases 13,018 -- -- -- 13,018Other Education Programs 26,963 -- -- 1 26,964

Military & Veterans Affairs Programs 2,823 -- -- -- 2,823Assigned for:

General Government: Administration & Regulatory Oversight 28,368 -- -- -- 28,368Judicial Branch 18,745 -- -- -- 18,745Legislative Branch 27,813 -- -- -- 27,813

Culture, Recreation, & Tourism Programs 5 -- -- -- 5Transportation & Development Programs 87 -- -- -- 87Public Safety Programs 1,048 -- -- -- 1,048Health & Welfare Programs 5,792 -- -- -- 5,792Corrections 1,262 -- -- -- 1,262Youth Programs 22 -- -- -- 22Education Programs 190 -- -- -- 190Economic Development Programs 207 -- -- -- 207Military & Veterans Affairs Programs 582 -- -- -- 582

Unassigned -- -- -- (4,928) (4,928)Total Fund Balance $ 2,290,147 $ 154,181 $ 1,425,607 $ 2,118,301 $ 5,988,236

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B. FUND BALANCE/NET POSITION RESTATEMENT – FUND FINANCIAL STATEMENTS

The following table discloses restatements of certain fund balances by fund (expressed in thousands):

Beginning Balance

Prior Period Adjustments

Beginning Balance, as

RestatedGeneral Fund $ 1,494,277 $ (354) $ 1,493,923Capital Outlay Escrow Fund 161,761 -- 161,761Louisiana Education Quality Trust Fund 1,399,643 -- 1,399,643Nonmajor Governmental Funds 2,103,731 -- 2,103,731Unemployment Trust Fund 980,951 1,099 982,050Louisiana Community & Technical Colleges System (110,775) (136,101) (246,876)

The beginning fund balance of the General Fund changed due mainly to various immaterial prior period adjustments within the Office of Risk Management, and the Judicial Branch agencies. The restatement in beginning fund balance also decreased due to cash eliminations within the Louisiana Economic Development Fund. Restatements to beginning net position were also recorded in the Louisiana Community and Technical Colleges System and the Unemployment Trust Fund financial statements. The primary reasons for the restatements were the implementation of GASB Statement 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions and the corrections of errors in previously issued financial statements.

C. NET POSITION RESTATEMENT – GOVERNMENT-WIDE FINANCIAL STATEMENTS

The following table discloses restatements of net position for governmental and business-type activities in the government-wide financial statements (expressed in thousands):

Beginning Balance

Prior Period Adjustments

Beginning Balance, as

RestatedGovernmental Activities $ 4,263,400 $ (4,845,626) $ (582,226)Business-type Activities 2,079,864 (155,186) 1,924,678

Beginning net position for governmental activities decreased by $4.8 billion due to restatements of beginning net position/fund balance recorded in various governmental funds and accounts. The largest restatements are related to the implementation of a new GASB statement relating to OPEB and the liability for the New Orleans area levee improvement project. The implementation of GASB Statement 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions, requires governments to recognize the unfunded actuarial accrued liability for OPEB plans in the financial statements. The implementation of GASB Statement 75 resulted in a $3.2 billion decrease in beginning net position. In addition, the State recognized and recorded a liability for the State of Louisiana’s share of the cost relating to two project partnership agreements with the United States Army Corps of Engineers (USACE) to construct and improve the levee systems in the greater New Orleans area. As of June 30, 2018, the State’s share of the project cost is $1.5 billion.

Beginning net position for the business-type activities (BTA’s) changed primarily due to restatements associated with the implementation of GASB Statement 75 as discussed above.

D. BUDGET STABILIZATION

Louisiana voters first approved a constitutional amendment in 1990 to formally set aside funds for use when the State’s Revenue Estimating Conference (REC) forecasts revenue shortfalls for the subsequent fiscal year or projects a budgetary deficit in the current fiscal year. The funds set aside are deposited into the Budget Stabilization Fund, as authorized by Louisiana Constitution Article VII, Section 10.3 and LRS 39.94. The fund’s activity is accounted for within the General Fund and has a restricted fund balance of $321 million at June 30, 2018, in the accompanying financial statements.

Budget Stabilization is funded by the following sources in accordance with the Constitution: (1) all money available for appropriation from the State general fund and dedicated funds in excess of the expenditure limit; (2) all mineral revenues in excess of $850 million received by the State in each fiscal year; (3) 25% of any money designated in the official forecast as

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nonrecurring; (4) legislative appropriations to the fund, including any appropriation to the fund from money designated in the official forecast; and (5) the fund’s investment earnings realized in each fiscal year. No appropriation or deposit to the fund can be made if the appropriation or deposit would cause the fund cash balance to exceed 4% of total state revenue receipts for the previous fiscal year.

Budget stabilization resources are only available for expenditure under the following circumstances and with the consent of two-thirds of the elected members of each house of the legislature: (1) when the official forecast of recurring money for the next fiscal year is less than the official forecast of recurring money for the current fiscal year, the difference (not to exceed one-third of the fund) can be incorporated into the next year’s official forecast or (2) when a deficit for the current fiscal year is projected due to a decrease in the official forecast, an amount equal to one-third of the fund (not to exceed the projected deficit) may be appropriated (expended). However, the Constitution states that the amount of budget stabilization funds included in the official forecast for the next fiscal year plus the amount appropriated in the current fiscal year cannot exceed one-third of the stabilization fund balance at the beginning of the current fiscal year. NOTE 11: TAX ABATEMENT PROGRAMS

The State of Louisiana administers a variety of tax abatement programs that reduce the taxes that an individual or entity would owe in order to encourage certain activities such as relocating or retaining businesses, jobs creation or retention, rehabilitation and revitalization of distressed local economies, historical preservation, housing construction, and research and development projects. Tax abatement programs reduce state tax revenue through authorized agreements between the State and individuals or entities in which the State promises to forgo tax revenue and the individual or entity promises to perform a specific activity that contributes to economic development or otherwise benefits the State of Louisiana or the citizens of the State. Information on the agreements for tax abatement programs that have been entered into by the State is disclosed below, including the purpose of the tax abatement program and the amount of state tax revenue that was not collected as a result of the agreements for each program.

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Programs Administered by Louisiana Economic Development (LED)GASB 77 Tax Abatements Competitive Projects Payroll Incentive

ProgramDigital Interactive Media and Software Tax Credit

1. Purpose of the Program

To encourage program participants to choose to locate in the state of Louisiana, which would result in a positive economic benefit to the state.

To encourage development in Louisiana of a strong capital base for the production of digital interactive media products and platforms in order to achieve a more independent self supporting industry.

2. Tax being Abated State Sales and Use Tax, Corporate Income TaxState Individual and State Corporate Income Tax and Franchise Tax

3. Authority to Enter into Abatement Agreement LRS 51:3121 et. seq. LRS 47:6022

4. Eligibility Criteria

Must be primarily engaged in a specific activity at the contract site and at least 50% of sales of the business are to out of state customers, customers who resell the product or service to out of state customers for ultimate use, and/or to the federal government. Create a minimum number of jobs and payroll. Offer an eligible basic health care plan to the people employed.

A company seeking to participate in program must apply through an application process and be certified as eligible by Louisiana Economic Development.

5. Mechanism by which the taxes are abated, including (a) How are the Recipient's Taxes Reduced Tax Rebates Tax Credits

6. Mechanism by which the taxes are abated, including (b) How the amount of the Tax Abatement is Determined

Provides an incentive rebate up to 15% of the company's new payroll and either a 5% state sales and use tax rebate on capital expenditures or a 1.2% project facility expense rebate.

For applications submitted on or after July 1, 2017, tax credits of 18% on eligible expenditures on goods obtained from a source within the state and services performed in the state. An additional 7.0% may be earned on eligible Louisiana resident payroll.

7. Provisions for Recapturing Abated Taxes

The contract shall provide the provisions for monitoring of performance and consequences for failure to perform and other contract violations.

The company's state income taxes can be increased to recapture the credits received, if the expenditures were not actually expended in Louisiana as production related costs of the state certified production. Credits previously granted to a taxpayer, but later disallowed, may be recovered by the secretary of the Department of Revenue by any collection remedy authorized by R.S. 47:1561.

8. The Types of Commitments made by the Recipients of the Tax Abatement

Must demonstrate net new jobs and payroll within the state and the project is deemed to be competitive in nature. Must offer a qualified basic health care benefits plan to the individuals employed. Must also meet specific total sales criteria.

Only expenditures for goods obtained from a source within the state and services performed in the state are potentially eligible to receive tax credits. Expenditures must be audited by a CPA firm assigned by LED.

9. Gross Dollar Amount of the Reduction of Taxes for the Current Fiscal Year, on an Accrual Basis $-0- $11,574,373

10. Description of information that was Omitted because the Information was Legally Prohibited from being Disclosed

No information was omitted due to legal prohibitions


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Programs Administered by Louisiana Economic Development (LED)

GASB 77 Tax Abatements

Enterprise Zone ProgramExemption for Manufacturing Establishments (Industry Assistance) Program


To stimulate business and industrial growth by increasing employment in certain depressed areas in the state, designated enterprise zones, by providing tax incentives to businesses hiring in those areas, and by providing tax incentives to those areas.

To induce industrial development in the state, encourage the establishment of new business enterprises, and the retention and expansion of existing business.

2. Tax being AbatedState Sales and Use Tax, and State Income Tax, or State Franchise Tax

State Corporation Franchise Tax, State Income Taxes, and State Sales and Use Tax

3. Authority to Enter into Abatement Agreement

LRS 51:1781 et. seq., Louisiana Administrative Code Title 13, Chapter 7, subchapter 701 et. seq. LRS 47:4301-4306


New or existing Louisiana businesses which will at a minimum create 5 permanent new full time jobs within 24 months of their project start date, or increase their nationwide employment by 10% within the first 12 months. Also the business must hire 50% or more of the new jobs from the targeted groups..

May consider any and all factors which are relevant to the continued operations of the applicant including benefits to the state in terms of employment opportunities, payroll, expenditures for goods and services, creation of new jobs, and contributions to the revenue base of the state.

5. Mechanism by which the taxes are abated, including (a) How are the Recipient's Taxes Reduced Tax Credit and Rebate Tax Exemptions


One time $3,500 or $1,000 job tax credit for each net new job created or a 4% rebate of sales and use taxes on qualifying purchases or a 1.5% refundable tax credit on the total capital investment excluding tax exempt items.

Tax liabilities reduced based on annual report filed with LED, which includes total jobs with payroll, current year's capital investment, and any other contractual requirements.


Per LRS 51:1787 (I) there are provisions for recapturing abated taxes. However, it is unlikely since the company must be certified as eligible by Louisiana Economic Development before any tax credits or rebates can be claimed.

A contract may be canceled upon review of an audit that uncovered a violation of the contract or the need for the exemption or the grounds for the exemption are no longer applicable. The state shall give notice in writing and any remaining portion of the exemption granted may be canceled.


The company must certify that the required job requirements have been met based on the eligibility criteria listed in item number 4 above. 50% of net new jobs should belong to the employees that meet the specified requirements.

The business entity shall give preference to Louisiana manufacturers and must continue to operate and maintain business, jobs, payroll, capital investment in Louisiana, and comply with any other requirement as listed in the approved contract.

9. Gross Dollar Amount of the Reduction of Taxes for the Current Fiscal Year, on an Accrual Basis $37,258,756 $-0-




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Programs Administered by Louisiana Economic Development (LED)GASB 77 Tax AbatementsLouisiana Quality Jobs Program Motion Picture Production Tax Credit


An inducement for businesses to locate or expand existing operations in Louisiana and create quality jobs focusing on specific industry sectors.

To encourage development in Louisiana of a strong capital and infrastructure base for motion picture production in order to achieve an independent, self supporting industry.

2. Tax being Abated State Sales and Use Tax, State Income Taxes State Income Tax3. Authority to Enter into Abatement Agreement LRS 51:2451-2462 LRS 47:6007


Must be an eligible type business, must create a minimum number of new direct jobs, must comply with healthcare and payroll requirements, and other thresholds.

A motion picture company domiciled and headquartered in Louisiana, which has a viable multi-market commercial distribution plan may complete an application to be certified by LED to become a state certified production company, then the production expenditures are audited by a CPA appointed by the office and the tax credit is issued to the motion picture production company upon approval.

5. Mechanism by which the taxes are abated, including (a) How are the Recipient's Taxes Reduced Tax Rebate Tax Credit


Up to 6% rebate on qualified payroll and either a 5% state sales tax rebate or a 1.5% project facility expense rebate on qualifying items.

The amount of tax credit which may be earned is 25% of the total base investment dollars per project. Investors may receive an increased base investment credit rate by satisfying additional criteria. The maximum tax credit that a production can earn for the base investment is 40%.


By the third fiscal year the company's verified gross payroll must agree to the minimum of five new direct jobs or the gross payroll must equal or exceed the minimum required threshold. If these provisions are not met, rebates can be recaptured.

Tax credits previously granted, but later disallowed pursuant to the provisions of LRS 47:6007 may be recovered by the secretary of the Department of Revenue through any collection remedy authorized by LRS 47:1561.


Create a minimum of 5 new direct jobs that are full time and offered a basic health care plan. There are also minimum wage and payroll threshold requirements.

Only expenditures for goods obtained from a source within the state and services performed in the state are potentially eligible to receive tax credits. Expenditures must actually have been made and subsequently audited by a CPA assigned by the LED.

9. Gross Dollar Amount of the Reduction of Taxes for the Current Fiscal Year, on an Accrual Basis $104,303,596 $180,000,000




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Programs Administered by Louisiana Economic Development (LED)GASB 77 Tax Abatements Musical and Theatrical Production Income

Tax Credit Ports Investor Tax Credits


To enhance economic and educational development and offer numerous and varied employment opportunities while creating opportunities for new and relocating businesses.

To encourage private investment in and the use of state port facilities in Louisiana.

2. Tax being AbatedState Individual Income and State Corporate Income Tax State Income and Corporate Franchise Tax

3. Authority to Enter into Abatement Agreement LRS 47:6034 LRS 47:6036


Must be a state certified musical or theatrical production or infrastructure which includes performing and or filming of live musical and theatrical performance in the state before live audiences.

A Cooperative Endeavor Agreement is required between the Port and the applicant for qualifying projects that will result in significant positive economic benefits to the state.

5. Mechanism by which the taxes are abated, including (a) How are the Recipient's Taxes Reduced Tax Credit Tax Credit


For initial certifications on or after 7/1/17, Eligible production expenditures are as follows: (1) Expenditures greater than $100,000 and less than or equal to $300,000 = 7% (2) Expenditures greater than $300,000 and less than or equal to $1,000,000 = 14% (3) Expenditures greater than $1,000,000 = 18% (4) Additional credits may be earned at the rate of 7% for Louisiana resident payroll.

The Department of Economic Development may grant a tax credit equal to 72% of the total capital costs of such qualifying project to be taken at 5% per tax year or shall grant such other amount of tax credit to be taken at such other percentage which is warranted by the significant positive economic benefit, within certain maximum limits.


Credits previously granted to a taxpayer but later disallowed by the Department of Economic Development may be recovered through any collection remedy authorized by LRS 47:1561.

If the funds for which an investing company received credits are not invested and expended within the requirements of the agreement, the investing company's state income tax for such taxable period can be increased to recapture the credit.


Only goods obtained from a source within the state and services performed in the state are potentially eligible to receive tax credits. Expenditures must actually have been made and subsequently audited by a CPA assigned by the LED.

Must be a project sponsored or undertaken by a public port and one or more investing companies that has capital costs of not less than $1,500,000 and with the predominant business activity constituting warehousing or port and harbor operations and cargo handling.

9. Gross Dollar Amount of the Reduction of Taxes for the Current Fiscal Year, on an Accrual Basis $6,377,078 $-0-




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Programs Administered by Louisiana Economic Development (LED)GASB 77 Tax AbatementsRetention and Modernization Tax Credit Sound Recording Investor Tax Credit


To provide an inducement for businesses to remain in the state and not relocate outside the state and to modernize their existing operations in Louisiana.

To encourage the development in Louisiana of a strong capital and infrastructure base for sound recording productions in order to achieve a more independent, self supporting music and sound recording industry.

2. Tax being AbatedState Individual Income Tax, State Corporate Income and State Corporate Franchise Tax State Income Tax

3. Authority to Enter into Abatement Agreement LRS 51:2399.1 through 51:2399.6 LRS 47:6023


Employer must increase a minimum 10% in the maximum capacity or efficiency of the facility; or make an approved investment of at least $5,000,000 in the facility.

Qualified expenditures of a state certified production or state certified recording infrastructure project occurring over specified period of time.



The credits approved by the Department of Economic Development shall be granted at the rate of four percent, for approved projects occurring on or after 7/1/17, of the amount of qualified expenditures incurred by the employer for modernization with credit divided in equal portions for five years, subject to limitations.

Each investor may be allowed a tax credit of 18% of the eligible expenditures made for initial certifications on or after 7/1/17 in excess of $25,000 or, if a resident of this state, in excess of $10,000.


There are no recapture provisions. Once expenses are verified, certification letters are issued by an independent CPA.

If the funds for which an investor receives credits are not invested in and expended with respect to a state-certified production within a certain time period, then the investor's state income tax shall be increased by such amount necessary for the recapture of the credits. Credits previously granted to a taxpayer, but later disallowed, may be recovered by the secretary of the Department of Revenue by any collection remedy authorized by LRS 47:1561.


The company commits to capital investments and jobs and payroll targets.

Only audited expenditures of a state certified production for goods obtained from a source within the state and services performed in the state are potentially eligible to receive tax credits. Additionally, state-certified productions may be required to display the state brand or logo, or both, prescribed by the Secretary.

9. Gross Dollar Amount of the Reduction of Taxes for the Current Fiscal Year, on an Accrual Basis $4,031,575 $41,673




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Programs Administered by Louisiana Economic Development (LED)GASB 77 Tax AbatementsTax Equalization Program


To encourage the establishment and retention of manufacturing establishments, headquarters, or warehousing and distribution establishments by providing a procedure whereby the total state and local taxes imposed be reduced to the level imposed by other competing states.

2. Tax being Abated

State Corporation Franchise Tax, State Corporation Income Tax, and State Sales and Use Tax

3. Authority to Enter into Abatement Agreement LRS 47:3201-3205


The company must be located in another state or located in Louisiana and contemplating re-locating to another state which offers a greater tax advantage than Louisiana. Upon recommendation by the state, the company must receive an invitation to apply for the program from the Governor.

5. Mechanism by which the taxes are abated, including (a) How are the Recipient's Taxes Reduced Tax Exemption


The Board of Commerce and Industry will grant only the amount of exemption necessary to effect equality in amount between the taxes payable in Louisiana and the taxes which are or would be payable in the state in which the establishment is located or contemplating locating.


Written notice of violations of the terms of the contract are given to the contracted company. If the violations are not corrected within 90 days, any remaining portions of the exemption from tax granted under the contract may be terminated.


The company must continue to operate and maintain business, jobs, payroll and capital investment in Louisiana.

9. Gross Dollar Amount of the Reduction of Taxes for the Current Fiscal Year, on an Accrual Basis $7,455,954



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Programs Administered by Louisiana Department of InsuranceGASB 77 Tax Abatements Louisiana Capital Companies (CAPCO) Tax

Credit Program New Market Jobs Act Program


To provide assistance in the formation and expansion of new businesses that create jobs in the state by providing for the availability of venture capital financing to entrepreneurs, managers, inventors, and other individuals for the development and operation of qualified Louisiana businesses.

To encourage capital or equity investment in, or loan to, any qualified active low-income community business.

2. Tax being Abated

Income Tax and Insurance Premium Tax for categories of Life, Accident, & Health; Fire Casualty & Misc.; Surplus Lines; and Retaliatory.

Insurance Premium Tax (for categories of Life, Accident, & Health; Fire Casualty & Misc.; Surplus Lines; and Retaliatory)

3. Authority to Enter into Abatement Agreement LRS 51:1921, LRS 22:832E LRS 47:6016.1


Companies must be certified by the Louisiana Office of Financial Institutions. The capitalization must be at least $200,000.

The qualified community development entity (CDE) must apply to Department of Revenue for certification of the equity investments it issues.



The income tax credit is 35% of the capital investment. The total income tax credits granted to all taxpayers are limited to $2,000,000 per calendar year. For insurance premium tax reductions, tax reductions are applied to the premium tax liability by year.

The credit amount is equal to the applicable percentage for such credit allowance date multiplied by the purchase price paid to the issuer of such qualified equity investment.


Premium tax reductions are subject to the same forfeiture and repayment provisions as income tax credits as described in LRS 51:1927 (C) and 1928(A)

It the company violates the terms of the agreement, or if the federal tax credit is recaptured by the IRS, the Department of Insurance shall recapture the claimed credit on a return.


Companies must be certified as a Louisiana Capital Company by the Office of Financial Institutions.

Any qualified community development entity that makes a qualified equity investment is vested with an earned credit against state premium tax liability that may be used as per the enacted law.

9. Gross Dollar Amount of the Reduction of Taxes for the Current Fiscal Year, on an Accrual Basis $62,429 $-0-




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Programs Administered by Louisiana Department of RevenueGASB 77 Tax AbatementsNeighborhood Assistance Program New Market Tax Credit


To provide incentives to businesses to provide neighborhood assistance, job training for individuals, community services, or crime prevention to upgrade impoverished areas.

To encourage and attract private sector equity investment in a qualified community development entity in the state.

2. Tax being Abated State Corporation and Individual Income Taxes State Corporate Income and Franchise Tax3. Authority to Enter into Abatement Agreement LRS 47:35 and 287.753 LRS 47:6016


The business must present a proposal to the Commission of Administration, endorsed by the local government within the area, that must set forth the program to be conducted, the neighborhood area to be served, why the program is needed, the estimated amount to be invested in the program, and the plans for implementing the program.

The qualified community development entity (CDE) must apply to Louisiana for certification of the equity investments it issues. LED certifies that qualified low-income investments are consistent with the target industries.



The credit is up to 50% of the actual amount contributed to approved programs, limited to $180,000 annually. Total credits granted in a fiscal year can not exceed one percent of the total amount of state corporate income tax collected in the prior fiscal year.

The credit is equal to the applicable percentage of the adjusted purchase price paid to the issuer of such qualified equity investment for such investment which, in turn, has been invested in qualified low-income community investments for such credit allowance date.

7. Provisions for Recapturing Abated Taxes No provisions for recapturing the abated taxes.

If an company fails to maintain qualified low-income community investments in the state in an amount at least equal to the amount used in calculating the credits issued, then the credits awarded can be recaptured.


Provide neighborhood Assistance, job training, education for individuals, community services, or crime prevention.

The tax credits are based on qualified investments made by the companies.

9. Gross Dollar Amount of the Reduction of Taxes for the Current Fiscal Year, on an Accrual Basis $-0- $1,938,840




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Programs Administered by Louisiana Department of RevenueGASB 77 Tax AbatementsProcurement Processing Company Rebate Rehabilitation of Historic Structures


To recruit purchasing companies that generate sales of items subject to state sales / use taxes that will have a significant positive economic benefit to the state.

To provide a credit for the costs and expenses incurred during the rehabilitation of a historic structure located in a downtown development or cultural district.

2. Tax being Abated State Sales Tax State Income and Franchise Tax3. Authority to Enter into Abatement Agreement LRS 47:6351 LRS 47:6019


The company must be a procurement processing company that is engaged in managing the activities of unrelated purchasing companies that brings new taxable sales to Louisiana.

In order to qualify for the credit, the historic structure must be located in a downtown development or cultural district listed on the National Register of Historic Places or be certified by the state historic preservation office as contributing to the historical significance of the district. The structures must be nonresidential real property or residential rental property.

5. Mechanism by which the taxes are abated, including (a) How are the Recipient's Taxes Reduced Rebate Tax Credit


A percentage, as determined by contract, of state sales tax revenue generated as a result of the activities of these purchasing companies.

The credit is equal to 25% of the eligible costs and expenses of the rehabilitation incurred prior to January 1, 2018, regardless of the year in which the property is placed in service. For expenses incurred on or after January 1, 2018, the credit is equal to 20% of the eligible costs and expenses, regardless of the year in which the property is placed in service.


If after a rebate has been paid, and it is determined that certain items did not constitute new taxable sales, the amount rebated for those items shall be recaptured from the company, subject to the prescriptive period set forth in LRS 47:1561.2. No provisions for recapturing the abated taxes.


The rebate payments are based upon new taxable sales which is the sale of goods and services upon which state sales and use tax is paid, which would not have occurred but for the operation in the state of the procurement processing company.

The credit is for the amount of eligible costs and expenses incurred during the rehabilitation of the historic structure.

9. Gross Dollar Amount of the Reduction of Taxes for the Current Fiscal Year, on an Accrual Basis $11,693,808 $99,929,840




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Programs Administered by Louisiana Department of RevenueGASB 77 Tax Abatements Cooperative Endeavor Agreements for Tax

Increment Financing (TIF) Districts

1. Algiers TIF-New Orleans2. Bass Pro TIF-Denham Springs3. Broussard TIF4. Cabela's TIF-Gonzales5. Garrett Rd TIF-Monroe6. Rooms to Go TIF-St. Tammany7. Ruston TIF8. Tower Drive TIF-Monroe9. Capitol House Taxing District TIF-Baton Rouge10. Bluebonnet Convention Hotel Taxing District TIF-Baton Rouge11. EBRATS Building Special Taxing District TIF-Baton Rouge


To provide financing for the districts and allow them to issue bonds or provide for the issuance of bonds and to provide funds for the authorized public functions within the districts.

2. Tax being Abated State Sales Tax3. Authority to Enter into Abatement Agreement LRS 33:9020 through 9039


Any group consisting of at least three people must be designated as economic corporation by the legislature or the governing authority of a local governmental subdivision of the state.

5. Mechanism by which the taxes are abated, including (a) How are the Recipient's Taxes Reduced

A portion of the sales tax collected inside the following districts are distributed back to the district on a quarterly basis; (1) Algiers TIF-New Orleans, (2) Bass Pro TIF-Denham Springs, (3) Broussard TIF, (4) Cabela's TIF-Gonzales, (5) Garrett Rd TIF-Monroe (6) Rooms to Go TIF-St. Tammany, (7) Ruston TIF, (8) Tower Drive TIF-Monroe. The 4% state sales tax collected on hotel rooms within the following districts are retained by the district and are not remitted to the Department of Revenue; (1) Capitol House Taxing District TIF-Baton Rouge, (2) Bluebonnet Convention Hotel Taxing District TIF-Baton Rouge, (3) EBRATS Building Special Taxing District TIF-Baton Rouge.


The amount of taxes distributed to or retained by the district is spelled out in the cooperative endeavor agreement.

7. Provisions for Recapturing Abated Taxes No Provisions for Recapturing Abated Taxes

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Programs Administered by Louisiana Department of RevenueGASB 77 Tax Abatements Cooperative Endeavor Agreements for Tax

Increment Financing (TIF) Districts

1. Algiers TIF-New Orleans2. Bass Pro TIF-Denham Springs3. Broussard TIF4. Cabela's TIF-Gonzales5. Garrett Rd TIF-Monroe6. Rooms to Go TIF-St. Tammany7. Ruston TIF8. Tower Drive TIF-Monroe9. Capitol House Taxing District TIF-Baton Rouge10. Bluebonnet Convention Hotel Taxing District TIF-Baton Rouge11. EBRATS Building Special Taxing District TIF-Baton Rouge


This districts anticipates that the projects will result in the creation of jobs, stimulate economic development and increase sales and use tax receipts within the geographic area comprising the District, serving an integral public purpose. The districts will proceed with diligence to issue the bonds and, as necessary, make the funds therefrom available to the Corporation for the development and construction of the project.

9. Gross Dollar Amount of the Reduction of Taxes for the Current Fiscal Year, on an Accrual Basis $11,473,401



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NOTE 12: OTHER DISCLOSURES

A. RELATED PARTY TRANSACTIONS

The State Board of Elementary and Secondary Education (SBESE) serves as the governing board for the Department of Education. The State Superintendent of Education is appointed by the SBESE and is responsible for the daily administration of the department and submits educational policy and funding issues and awards to the SBESE for implementation authority.

The SBESE consists of eleven members representing eight geographic regions of the State (SBESE districts). Eight members are elected by citizens in the representative SBESE districts and three members at large are appointed by the governor. Elected and appointed members serve a term of four years concurrent with the term of the governor.

The Department of Education presents funding awards and/or allocations to the Finance Committee of the SBESE for recommendation to the full board. A majority of the board constitutes department authority to award funds to sub-recipients.

A SBESE member at large is currently the Superintendent of the St. Bernard Parish School Board. St. Bernard Parish School Board is a sub-recipient of funds authorized by SBESE. For the fiscal year ended June 30, 2018, St. Bernard Parish School Board received amounts totaling $54,182,927 in funding authorized by SBESE and released by the Department of Education.

A SBESE member at large is currently the Superintendent of the Diocese of Alexandria Office of Catholic Schools. For fiscal year ended June 30, 2018, the Diocese of Alexandria received $1,328,911 in funding authorized by the Department of Education.

The Motor Fuels Underground Storage Tank Trust Advisory Board advises the Secretary of the Department of Environmental Quality regarding the Underground Storage Tank Trust Fund transactions. One board member has ownership in a company that received disbursements of $159,828 from the Trust Fund. One board member holds a key management position in a company that received disbursements of $3,347,961 in payments from the Trust Fund.

B. ADOPTION OF NEW ACCOUNTING STANDARDS

For the year ended June 30, 2018, the State of Louisiana implemented GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, GASB Statement No. 81, Irrevocable Split-Interest Agreements, GASB Statement No. 85, Omnibus 2017, and GASB Statement No. 86, Certain Debt Extinguishment Issues.

NOTE 13: SUBSEQUENT EVENTS

A. DEBT ISSUANCES

On December 19, 2018, the Louisiana Local Government Environmental Facilities and Community Development Authority issued $66,830,000 in revenue bonds on behalf of the LCTCS Facilities Corporation, a nonprofit organization, for Act 360 Phase 3 for the following projects: Delgado Charity School of Nursing and Allied Health Campus in New Orleans; Delgado Culinary Institute in New Orleans; Delgado Advanced Technology Building and Campus Expansion in New Orleans; Louisiana Delta Community College Nursing, Welding, Workforce Training Campus in Ruston; and SOWELA Technical Community College Hospitality & Tourism in Lake Charles.

B. CONSTITUTIONAL AMENDMENTS

Six amendments to the Louisiana Constitution of 1974 were voted on in a general election on November 6, 2018. All of the amendments passed and are summarized below.

Amendment one passed, which prohibits felons from holding or seeking elective public office or an “appointment of honor, trust, or profit in this state” for five years after completing a sentence for the conviction. The restriction does not apply to felons who are pardoned and it does not prohibit a convicted felon from being employed by the state or a political subdivision.

Amendment two passed, which provides that a noncapital criminal case for an offense committed on or after January 1, 2019, in which the punishment is necessarily confinement at hard labor shall be tried before a jury of twelve persons, all of whom must concur to render a verdict. Formerly, Louisiana allowed a conviction or acquittal of a felony defendant without a unanimous decision, with 10 out of 12 jury votes being required to reach a verdict.

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Amendment three passed, which allows local governments or other political subdivisions, pursuant to written agreement, to donate equipment and personnel to other local governments or political subdivisions without a requirement for receiving comparable value. Formerly, the state Constitution prohibited donations or loans by local government entities except in cases of emergency.

Amendment four passed, which removes the authority to appropriate or dedicate monies in the Transportation Trust Fund to the state police for traffic control purposes.

Amendment five passed, which extends eligibility for the following special property tax treatments to property in trust: the special assessment level for property tax valuation, the property tax exemption for property of a disabled veteran, and the property tax exemption for the surviving spouse of a person who died while performing their duties as a first responder, active duty member of the military, or law enforcement or fire protection officer.

Amendment six passed, which requires that any reappraisal of the value of residential property by more than 50%, resulting in a corresponding increase in property taxes, be phased-in over the course of four years during which time no additional reappraisal can occur and that the decrease in the total ad valorem tax collected as a result of phase-in of assessed valuation be absorbed by the taxing authority and not allocated to the other taxpayers.

R E Q U I R E D S U P P L E M E N T A R Y I N F O R M A T I O N O T H E R T H A N

M A N A G E M E N T ’ S D I S C U S S I O N A N D A N A L Y S I S


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BUDGETARY COMPARISON SCHEDULE - GENERAL FUND

BUDGET TO ACTUAL (NON-GAAP BUDGETARY BASIS)

FOR THE YEAR ENDED JUNE 30, 2018 (EXPRESSED IN THOUSANDS) VARIANCE WITH BUDGETED AMOUNTS ACTUAL AMOUNTS FINAL BUDGET ORIGINAL FINAL BUDGETARY BASIS POSITIVE (NEGATIVE) REVENUES:

INTERGOVERNMENTAL $ 12,888,206 $ 13,631,049 $ 12,053,287 $ (1,577,762)

TOTAL REVENUES 12,888,206 13,631,049 12,053,287 (1,577,762) EXPENDITURES: CURRENT:

GENERAL GOVERNMENT 1,139,666 1,840,416 1,421,423 418,993CULTURE, RECREATION & TOURISM 100,435 102,223 82,344 19,879TRANSPORTATION & DEVELOPMENT 678,331 702,377 697,813 4,564PUBLIC SAFETY 1,669,954 1,729,984 1,278,897 451,087HEALTH & WELFARE 14,333,393 14,547,263 13,535,061 1,012,202CORRECTIONS 826,218 854,031 807,887 46,144YOUTH DEVELOPMENT 125,588 124,980 113,536 11,444CONSERVATION & ENVIRONMENT 509,813 516,034 337,944 178,090EDUCATION 6,506,954 6,516,968 6,349,852 167,116AGRICULTURE & FORESTRY 89,893 91,255 79,480 11,775ECONOMIC DEVELOPMENT 143,897 209,453 131,713 77,740MILITARY & VETERANS AFFAIRS 159,548 176,517 157,713 18,804WORKFORCE SUPPORT & TRAINING 290,486 290,488 232,617 57,871

TOTAL EXPENDITURES 26,574,176 27,701,989 25,226,280 2,475,709

DEFICIENCY OF REVENUES UNDER EXPENDITURES (13,685,970) (14,070,940) (13,172,993) (897,947) OTHER FINANCING SOURCES (USES):

TRANSFERS IN 13,943,903 14,210,886 13,812,667 (398,219)TRANSFERS OUT (557,353) (581,594) (366,223) 215,371SALES OF GENERAL CAPITAL ASSETS -- -- 3 3

TOTAL OTHER FINANCING SOURCES/(USES) 13,386,550 13,629,292 13,446,447 (182,845) NET CHANGE IN BUDGETARY FUND BALANCE (299,420) (441,648) 273,454 715,102 BUDGETARY FUND BALANCE - BEGINNING 299,420 441,648 427,662 (13,986) BUDGETARY FUND BALANCE - ENDING $ -- $ -- $ 701,116 $ 701,116

The notes to required supplementary information are an integral part of this schedule.

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NOTES TO REQUIRED SUPPLEMENTARY INFORMATIONBUDGETARY REPORTINGFOR THE YEAR ENDED JUNE 30, 2018

The Budgetary Comparison Schedule - Budget to Actual (Non-GAAP Budgetary Basis) of the General Fund presents comparisons of the original and final legally adopted budget with actual activity presented on a budgetary basis. The budget is prepared for each budget unit at the appropriated program level which is the lowest level at which appropriations are adopted.

Since accounting principles applied for purposes of developing data on a budgetary basis differ significantly from those used to present financial statements in conformity with GAAP, a reconciliation of resulting basis and perspective differences in the revenues in excess of (less than) expenditures and other financing sources (uses) between budgetary and GAAP presentations for the year ended June 30, 2018, is presented below (expressed in thousands) for the General Fund.

Fund Balance (Budgetary Basis) $ 701,116

Reconciling Adjustments:

Basis Differences:

For budgetary purposes, the carryforward of expenditure authority from fiscal year 2018 to fiscal year 2019 and the uses of the 2017 surplus are considered a reduction in fiscal year 2018 fund balance. However, under GAAP, reductions in fund balance would occur only when expenditures are incurred. 137,759

Certain adjustments are necessary to convert budgetary fund balance to GAAP fund balance. These adjustments include payroll accruals, adjustments for inventories, accruals related to non-exchange transactions, and expenditure adjustments related to the recognition of principal and interest on defeased debt. (659,558)

Perspective Differences:

Statutorily dedicated funds are included in the General Fund for GAAP presentation but are considered separate funds for budgetary presentation. 1,624,364

The Office of Group Benefits and the Office of Risk Management are excluded from the General Fund for budgetary presentation but included in the General Fund for GAAP presentation. 336,902

Under the budgetary basis, expenditures for certain entities reported in the General Fund such as the legislative and judicial branches are recognized when monies are warranted rather than when the expenditures are incurred. 149,564

Fund Balance (GAAP) $ 2,290,147

The General Fund Budgetary Comparison Schedule is reported by agency in the Supplementary Information to the Comprehensive Annual Financial Report available on request from the Louisiana Division of Administration, Office of Statewide Reporting and Accounting Policy.

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PENSIONS

SCHEDULE OF COST SHARING PLAN CONTRIBUTIONS

(In thousands)

LASERS2018 2017 2016 2015

Contractually required contribution $ 577,042 $ 536,720 $ 562,470 $ 569,001

Contributions in relation to the contractually required contribution 577,042 536,720 562,470 569,001

Contribution deficiency (excess) $ -- $ -- $ -- $ --

Covered payroll $ 1,593,510 $ 1,568,078 $ 1,563,623 $ 1,568,676

Contributions as a percentage of covered payroll 36.21% 34.23% 35.97% 36.27%

DARS2018 2017 2016 2015

Contractually required contribution $ -- $ -- $ 984 $ 1,934

Contributions in relation to the contractually required contribution -- -- 984 1,934

Contribution deficiency (excess) $ -- $ -- $ -- $ --

Covered payroll $ 27,978 $ 27,918 $ 27,960 $ 27,896

Contributions as a percentage of covered payroll 0.00% 0.00% 3.52% 6.93%

Ten years of information is required to be presented; however, until a full 10-year trend is compiled, information for those years for which information is available will be presented.

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TRSL LSERS2018 2017 2016 2015 2018 2017 2016 2015

$ 50,920 $ 47,439 $ 50,162 $ 51,520 $ 256 $ 189 $ 234 $ 244

50,920 47,439 50,162 51,520 256 189 234 244

$ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --

$ 164,814 $ 159,014 $ 159,585 $ 163,855 $ 925 $ 690 $ 777 $ 741

30.90% 29.83% 31.43% 31.44% 27.67% 27.39% 30.12% 32.93%

LCCRRF ROVERS2018 2017 2016 2015 2018 2017 2016 2015

$ 1,497 $ 1,482 $ 1,494 $ 1,485 $ 1,757 $ 2,017 $ 2,292 $ 2,437

1,497 1,482 1,494 1,485 1,757 2,017 2,292 2,437

$ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --

$ 7,861 $ 7,766 $ 7,912 $ 8,394 $ 10,485 $ 10,177 $ 10,342 $ 10,233

19.04% 19.08% 18.88% 17.69% 16.76% 19.82% 22.16% 23.82%

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PENSIONSSCHEDULE OF COST SHARING PROPORTIONATE SHARE OF THE

NET PENSION LIABILITY(In thousands)

LASERS2018 2017 2016 2015

Proportion of the net pension liability (percentage) 80.12% 79.72% 79.45% 78.50%

Proportionate share of the net pension liability (asset) $ 5,639,645 $ 6,260,399 $ 5,403,807 $ 4,908,708

Covered payroll $ 1,593,510 $ 1,568,078 $ 1,568,676 $ 1,558,594

Proportionate share of the net pension liability as a percentage of covered payroll 353.91% 399.24% 344.48% 314.94%

Plan fiduciary net position as a percentage of the total pension liability 62.16% 57.32% 62.38% 65.02%

DARS2018 2017 2016 2015

Proportion of the net pension liability (percentage) 46.15% 46.38% 46.90% 47.86%

Proportionate share of the net pension liability (asset) $ 12,448 $ 8,878 $ 2,526 $ 955

Covered payroll $ 27,978 $ 27,918 $ 27,896 $ 28,091

Proportionate share of the net pension liability as a percentage of covered payroll 44.49% 31.80% 9.06% 3.40%


Ten years of information is required to be presented; however, until a full 10-year trend is compiled, information for those years for which information is available will be presented.

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TRSL LSERS2018 2017 2016 2015 2018 2017 2016 2015

4.34% 4.16% 4.21% 4.26% 0.30% 0.27% 0.26% 0.27%

$ 445,342 $ 488,598 $ 452,274 $ 435,565 $ 1,918 $ 2,057 $ 1,659 $ 1,592

$ 164,814 $ 159,014 $ 163,855 $ 188,202 $ 925 $ 690 $ 741 $ 916

270.20% 307.27% 276.02% 231.43% 207.35% 298.12% 223.89% 173.80%

65.30% 60.62% 62.77% 63.65% 73.39% 70.11% 75.29% 76.14%

LCCRRF ROVERS2018 2017 2016 2015 2018 2017 2016 2015

8.57% 8.53% 8.54% 8.27% 73.30% 74.15% 74.07% 72.46%

$ 12,964 $ 15,785 $ 12,806 $ 11,155 $ 16,090 $ 21,040 $ 18,141 $ 16,753

$ 7,861 $ 7,766 $ 8,394 $ 7,525 $ 10,485 $ 10,177 $ 10,233 $ 9,911

164.92% 203.26% 152.56% 148.24% 153.46% 206.74% 177.28% 169.03%

79.21% 73.61% 77.61% 79.38% 80.35% 73.54% 76.47% 77.68%

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PENSIONSSchedule of Changes in Net Pension Liability and Related Ratios

(Louisiana State Police Retirement System only)(In thousands)

2018 2017 2016 2015Total pension liability: Service cost $ 22,006 $ 21,783 $ 17,523 $ 14,008

Interest 70,440 63,046 56,560 53,921

Differences between expected and

actual experience 6,703 53,451 42,198 7,857

Changes in assumptions 214 -- -- 6,324

Benefit payments (43,543) (42,499) (43,376) (42,009)

Net change in total pension liability 55,820 95,781 72,905 40,101Total pension liability - beginning 1,006,626 910,845 837,940 797,839

Total pension liability - ending $ 1,062,446 $ 1,006,626 $ 910,845 $ 837,940

Plan fiduciary net position : Contributions - employer $ 48,556 $ 56,380 $ 53,799 $ 45,650

Contributions - employee 7,184 7,106 5,446 4,564

Contributions - nonemployer

Net investment income 98,946 (10,925) 18,930 94,080

Benefit payments (43,543) (42,499) (43,376) (42,009)

Other 1,006 2,045 (724) (623)

Net change in fiduciary net position 112,149 12,107 35,523 101,662

Plan fiduciary net position - beginning 670,423 658,316 622,793 521,131

Plan fiduciary net position - ending $ 782,572 $ 670,423 $ 658,316 $ 622,793

State's net pension liability $ 279,874 $ 336,203 $ 252,529 $ 215,147


Covered payroll $ 107,998 $ 108,937 $ 85,233 $ 71,880

Net pension liability as a percentage of covered payroll 259.15% 308.62% 296.28% 299.31%

Ten years of information is required to be presented; however, until a full 10-year trend is compiled those years for which information is available will be presented.

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PENSIONSSCHEDULE OF SINGLE EMPLOYER PLAN CONTRIBUTIONS

(Louisiana State Police Retirement System only)(In thousands)

2018 2017

Actuarially determined contribution $ 47,922 $ 48,556

Contributions in relation to the actuarially determined contribution 47,922 48,556Contribution deficiency (excess) $ -- $ --

Covered payroll $ 107,998 $ 108,937

Contributions as a percentage of covered payroll 44.37% 44.57%

Notes to Schedule:

Valuation date: June 30, 2018 June 30, 2017

Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in which contributions are reported.

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry age Normal Entry age Normal

Amortization method Level Annuity Level Annuity

Remaining amortization period 27 years 28 years

Asset valuation method Market Market

Inflation 2.50% 2.50%

Salary increases 5.25% 4.0% - 16.5% based on the member's years of service

Investment rate of return 7.0%, net of plan investment expense, including inflation

7.0%, net of plan investment expense, including inflation

Retirement age The 2008-2012 experience study updated retirement rates based on age and service eligibility requirements for normal retirement benefits.

The 2008-2012 experience study updated retirement rates based on age and service eligibility requirements for normal retirement benefits.

Mortality Mortality rates were based on the 2012 - 2017 experience study. As a result of this study, mortality for annuitants and beneficiaries was set equal to 110% of the RP2014 Total Dataset Healthy Annuitant Table for males and 105% of the RP2014 Total Dataset Healthy Annuitant Table for females, each with the full generational MP2017 scale. In addition, mortality for employees was set based on the RP2014 Employee Tables with the same full generational MP 2017 scale for mortality improvement and the same multipliers as the annuitant mortality tables (i.e., 110% for males and 105% for females). The RP2014 Disabled Tables were selected for disabled lives mortality with the same full generational MP2017 scale for mortality improvement as the annuitant mortality tables.

Mortality rates were based on the 2008-2012 experience study which updated preretirement deaths and postretirement life expectancies to the RP-2000 Combined Healthy Sex Distinct Mortality Table with mortality improvements projected to 2025. The RP-2000 Disabled Lives Mortality Table was selected for disabled annuitants.

Other information

Ten years of information is required to be disclosed; however, until a full 10-year trend is compiled, information for those years for which information is available will be presented.

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2016 2015

$ 56,380 $ 53,798

56,380 53,798$ -- $ --

$ 104,059 $ 85,233

54.18% 63.12%

June 30, 2016 June 30, 2015

Entry age Normal Entry age Normal

Level Annuity Level Annuity

29 years 30 years

Market Market

2.30% 2.30%

4.0% - 16.5% based on the member's years of service 4.0% - 16.5% based on the member's years of service





Mortality rates were based on the 2008-2012 experience study which updated preretirement deaths and postretirement life expectancies to the RP-2000 Sex Distinct Mortality Table with mortality improvements projected to 2025.

Mortality rates were based on the 2008-2012 experience study which updated preretirement deaths and postretirement life expectancies to the RP-2000 Sex Distinct Mortality Table with mortality improvements projected to 2025.

Covered payroll increased in 2016 due to (1) additional Louisiana State Troopers added to payroll and (2) increases to Louisiana State Trooper salaries effective July 1, 2016.

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OTHER POSTEMPLOYMENT BENEFITS PLANSSchedules of Required Supplementary Information

SCHEDULE OF CHANGES IN THE OGB PLANTOTAL OPEB LIABILITY AND RELATED RATIOS

Year Ended June 30, 2018(Dollar amounts in thousands)

2018Total OPEB liability - OGB Plan

Primary Government

Component Units

Service cost 179,830 64,927Interest 181,640 65,580Differences between expected and actual benefit payments (2,363) 2,867Changes of assumptions or other inputs (431,803) (155,901)Benefit payments (206,439) (78,254)Net change in total OPEB liability (279,135) 100,781TOTAL OPEB liability - beginning, restated 6,626,454 2,392,451Total OPEB liability - ending 6,347,319 2,291,670

Covered-employee payroll 1,532,058 723,561

Total OPEB liability as a percentage ofcovered-employee payroll 414.30% 316.72%

Notes to Schedule:No assets are accumulated in a trust to pay related benefits.

Changes of assumptions. Changes of assumptions and other inputs reflect the effects of changes in the discount rate each period. The discount rate changed from 2.71% as of July 1, 2016 to 3.13% as of July 1, 2017. Under GASB 75, unfunded plans are required to use a discount rate that reflects the 20-year tax-exempt municipal bond yield or index rate. Thus, the discount rates of 3.13% and 2.71% are based on the S&P Municipal Bond 20-Year High Grade Rate Index as of June 30, 2017 and June 30, 2016, respectively.

Ten years of information is required to be presented; however, until a full 10-year trend is compiled, those years for which information is available will be presented.

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SCHEDULE OF CHANGES IN THE LSU PLANTOTAL OPEB LIABILITY AND RELATED RATIOS

Year Ended June 30, 2018(Dollar amounts in thousands)

2018Total OPEB liability - LSU Plan

Primary Government

Component Units

Service cost 2,921 18,585Interest 3,476 36,404Changes of benefit terms (1,886) (18,075)Differences between expected and actual experience -- --Changes of assumptions or other inputs (5,392) (53,121)Benefit payments (946) (15,619)Net change in total OPEB liability (1,827) (31,826)TOTAL OPEB liability - beginning, restated 84,554 924,767Total OPEB liability - ending 82,727 892,941

Covered-employee payroll 39,847 466,742

Total OPEB liability as a percentage ofcovered-employee payroll 207.61% 191.31%

Notes to Schedule:No assets are accumulated in a trust to pay related benefits.

Changes of assumptions. Changes of assumptions and other inputs reflect the effects of changes in the discount rate each period. The discount rate increased from 3.58% to 3.90%. Under GASB 75, unfunded plans are required to use a discount rate that reflects the 20-year tax-exempt municipal bond yield or index rate. Thus, the discount rates of 3.58% and 3.90% are based on the Bond Buyer 20-Bond GO Index.

Ten years of information is required to be presented; however, until a full 10-year trend is compiled, those years for which information is available will be presented.

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B U D G E T A R Y C O M P A R I S O N S C H E D U L E

M A J O R D E B T S E R V I C E F U N D


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BUDGETARY COMPARISON SCHEDULE - BOND SECURITY AND REDEMPTION FUND

BUDGET TO ACTUAL (NON-GAAP BUDGETARY BASIS)

FOR THE YEAR ENDED JUNE 30, 2018 (EXPRESSED IN THOUSANDS) VARIANCE WITH BUDGETED AMOUNTS ACTUAL AMOUNTS FINAL BUDGET ORIGINAL FINAL BUDGETARY BASIS POSITIVE (NEGATIVE) REVENUES:

INTERGOVERNMENTAL $ -- $ -- $ 1,404 $ 1,404TAXES 9,898,900 10,073,900 10,363,015 289,115TOBACCO SETTLEMENT 103,200 103,700 62,029 (41,671)GAMING 862,500 873,500 747,314 (126,186)USE OF MONEY & PROPERTY 189,000 177,800 273,447 95,647LICENSES, PERMITS & FEES 1,328,152 1,417,352 1,466,957 49,605SALES OF COMMODITIES & SERVICES -- -- 2 2GIFTS, DONATIONS, AND CONTRIBUTIONS -- -- 6,997 6,997OTHER 351,098 217,797 1,326 (216,471)INTERAGENCY TRANSFERS 851,636 877,383 648,092 (229,291)

TOTAL REVENUES 13,584,486 13,741,432 13,570,583 (170,849)

EXPENDITURES: CURRENT:

GENERAL GOVERNMENT -- -- 203 (203)DEBT SERVICE:

PRINCIPAL 259,400 259,400 259,400 --INTEREST 156,783 158,330 158,330 --ISSUANCE COSTS & OTHER CHARGES -- -- 357 (357)

TOTAL EXPENDITURES 416,183 417,730 418,290 (560)

EXCESS(DEFICIENCY) OF REVENUES OVER(UNDER) EXPENDITURES 13,168,303 13,323,702 13,152,293 (171,409) OTHER FINANCING SOURCES(USES):

TRANSFERS IN -- -- 3,573 3,573TRANSFERS OUT (13,168,303) (13,323,702) (13,166,986) 156,716PREMIUM ON LONG-TERM DEBT ISSUED -- -- 1 1SALES OF GENERAL CAPITAL ASSETS -- -- 804 804INSURANCE RECOVERIES -- -- 10,315 10,315

TOTAL OTHER FINANCING SOURCES/(USES) (13,168,303) (13,323,702) (13,152,293) 171,409

NET CHANGE IN BUDGETARY FUND BALANCE -- -- -- -- BUDGETARY FUND BALANCE - BEGINNING -- -- -- -- BUDGETARY FUND BALANCE - ENDING $ -- $ -- $ -- $ --

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C O M B I N I N G A N D I N D I V I D U A L F U N D S T A T E M E N T S


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State of Louisiana

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COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS

JUNE 30, 2018 SPECIAL REVENUE FUNDS (EXPRESSED IN THOUSANDS)

EMPLOYMENT SECURITY

ADMINISTRATIVE ACCOUNT

FEDERAL ENERGY SETTLEMENT

FUND

INCUMBENT WORKER TRAINING ACCOUNT

LABOR PENALTY & INTEREST ACCOUNT

ASSETS:

CASH & CASH EQUIVALENTS $ 4,055 $ -- $ 1,260 $ 3,694INVESTMENTS -- 8,652 21,263 --RECEIVABLES (NET) 686 -- 3,348 6,687DUE FROM OTHER FUNDS -- -- 729 --AMOUNTS DUE FROM COMPONENT UNITS -- -- -- --DUE FROM FEDERAL GOVERNMENT -- -- -- --

TOTAL ASSETS $ 4,741 $ 8,652 $ 26,600 $ 10,381 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES LIABILITIES:

ACCOUNTS PAYABLE $ -- $ -- $ -- $ --DUE TO OTHER FUNDS 2,492 13,580 -- 210DUE TO LOCAL GOVERNMENTS -- -- -- --AMOUNTS HELD IN CUSTODY FOR OTHERS -- -- -- --

TOTAL LIABILITIES 2,492 13,580 -- 210 DEFERRED INFLOWS OF RESOURCES:

UNAVAILABLE REVENUE -- -- -- --TOTAL DEFERRED INFLOWS OF RESOURCES -- -- -- -- FUND BALANCES:

NONSPENDABLE -- -- -- --RESTRICTED -- -- -- --COMMITTED 2,249 -- 26,600 10,171UNASSIGNED -- (4,928) -- --

TOTAL FUND BALANCES 2,249 (4,928) 26,600 10,171 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $ 4,741 $ 8,652 $ 26,600 $ 10,381 (Continued)

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SPECIAL REVENUE FUNDS

LOUISIANA TOURISM

PROMOTION DISTRICT FUND

MARSH ISLAND OPERATING FUND

RETIREMENT SYSTEMS

INSURANCE PROCEEDS FUND

STATE HIGHWAY FUND #2

TRANSPORTATION TRUST FUND

TOTAL SPECIAL REVENUE FUNDS

$ 2,036 $ 707 $ -- $ 12,379 $ -- $ 24,131 -- -- -- -- 321,572 351,487 2,059 36 -- 839 6 13,661 5,024 -- -- 1,298 92,048 99,099 -- -- -- -- -- -- -- -- -- -- 81,518 81,518

$ 9,119 $ 743 $ -- $ 14,516 $ 495,144 $ 569,896

$ -- $ -- $ -- $ -- $ -- $ -- 102 743 -- 7,000 108,239 132,366 -- -- -- 7,516 -- 7,516 -- -- -- -- -- -- 102 743 -- 14,516 108,239 139,882 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 386,905 386,905 9,017 -- -- -- -- 48,037 -- -- -- -- -- (4,928) 9,017 -- -- -- 386,905 430,014

$ 9,119 $ 743 $ -- $ 14,516 $ 495,144 $ 569,896

State of Louisiana

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COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS

JUNE 30, 2018 DEBT SERVICE FUNDS PERMANENT FUNDS (EXPRESSED IN THOUSANDS)

TOBACCO SETTLEMENT FINANCING

CORPORATION

TRANSPORTATION INFRASTRUCTURE

MODEL FOR ECONOMIC

DEVELOPMENT TOTAL DEBT

SERVICE FUNDS EDUCATION

EXCELLENCE FUND ASSETS:

CASH & CASH EQUIVALENTS $ 180 $ -- $ 180 $ 3,132INVESTMENTS 70,739 82,671 153,410 510,383RECEIVABLES (NET) 100 70 170 --DUE FROM OTHER FUNDS -- 21 21 1,192AMOUNTS DUE FROM COMPONENT UNITS -- -- -- --DUE FROM FEDERAL GOVERNMENT -- -- -- --

TOTAL ASSETS $ 71,019 $ 82,762 $ 153,781 $ 514,707 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES LIABILITIES:

ACCOUNTS PAYABLE $ 10 $ 21 $ 31 $ 165DUE TO OTHER FUNDS -- 23 23 16DUE TO LOCAL GOVERNMENTS -- -- -- --AMOUNTS HELD IN CUSTODY FOR OTHERS -- -- -- --

TOTAL LIABILITIES 10 44 54 181 DEFERRED INFLOWS OF RESOURCES:

UNAVAILABLE REVENUE -- 70 70 --TOTAL DEFERRED INFLOWS OF RESOURCES -- 70 70 -- FUND BALANCES:

NONSPENDABLE -- -- -- 464,444RESTRICTED 71,009 82,648 153,657 50,082COMMITTED -- -- -- --UNASSIGNED -- -- -- --

TOTAL FUND BALANCES 71,009 82,648 153,657 514,526 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $ 71,019 $ 82,762 $ 153,781 $ 514,707 (Concluded)

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PERMANENT FUNDS

FULLER-EDWARDS ARBORETUM TRUST FUND

HEALTH EXCELLENCE FUND

W.R. IRBY BEQUEST FUND TOPS FUND

TOTAL PERMANENT FUNDS

TOTAL NONMAJOR GOVERNMENTAL

FUNDS

$ 169 $ -- $ 2,800 $ 445 $ 6,546 $ 30,857 -- 510,382 1,005 510,382 1,532,152 2,037,049 -- -- 25 -- 25 13,856 -- 1,607 -- 1,192 3,991 103,111 -- -- -- 43 43 43 -- -- -- -- -- 81,518

$ 169 $ 511,989 $ 3,830 $ 512,062 $ 1,542,757 $ 2,266,434

$ 1 $ 6,050 $ 76 $ -- $ 6,292 $ 6,323 -- 1,726 -- 30 1,772 134,161 -- -- -- -- -- 7,516 -- -- 63 -- 63 63 1 7,776 139 30 8,127 148,063 -- -- -- -- -- 70 -- -- -- -- -- 70 100 466,298 -- 464,787 1,395,629 1,395,629 68 37,915 3,691 47,245 139,001 679,563 -- -- -- -- -- 48,037 -- -- -- -- -- (4,928) 168 504,213 3,691 512,032 1,534,630 2,118,301

$ 169 $ 511,989 $ 3,830 $ 512,062 $ 1,542,757 $ 2,266,434

State of Louisiana

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COMBINING STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2018 SPECIAL REVENUE FUNDS (EXPRESSED IN THOUSANDS)

EMPLOYMENT SECURITY

ADMINISTRATIVE ACCOUNT

FEDERAL ENERGY SETTLEMENT

FUND

INCUMBENT WORKER TRAINING ACCOUNT

LABOR PENALTY & INTEREST ACCOUNT

REVENUES:

INTERGOVERNMENTAL REVENUES $ -- $ -- $ -- $ --TAXES 4,033 -- 20,171 13TOBACCO SETTLEMENT -- -- -- --USE OF MONEY & PROPERTY 36 67 149 85LICENSES, PERMITS & FEES -- -- 6 4,709OTHER -- 5 -- --

TOTAL REVENUES 4,069 72 20,326 4,807 EXPENDITURES:

CURRENT: GENERAL GOVERNMENT -- -- -- --CULTURE, RECREATION & TOURISM -- -- -- --TRANSPORTATION & DEVELOPMENT -- -- -- --EDUCATION -- -- -- --AGRICULTURE & FORESTRY -- -- -- --

INTERGOVERNMENTAL -- -- -- --CAPITAL OUTLAY -- -- -- --DEBT SERVICE:

PRINCIPAL -- -- -- --INTEREST -- -- -- --ISSUANCE COSTS & OTHER CHARGES -- -- -- --

TOTAL EXPENDITURES -- -- -- -- EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 4,069 72 20,326 4,807 OTHER FINANCING SOURCES (USES):

TRANSFERS IN -- -- -- --TRANSFERS OUT (3,994) (492) (18,351) (3,181)REFUNDING BONDS ISSUED -- -- -- --PREMIUM ON REFUNDING BONDS ISSUED -- -- -- --PAYMENTS TO REFUNDED BOND ESCROW AGENT -- -- -- --SALES OF GENERAL CAPITAL ASSETS -- -- -- --

TOTAL OTHER FINANCING SOURCES/(USES) (3,994) (492) (18,351) (3,181) NET CHANGE IN FUND BALANCES 75 (420) 1,975 1,626 FUND BALANCES AT BEGINNING OF YEAR 2,174 (4,508) 24,625 8,545 FUND BALANCES AT END OF YEAR $ 2,249 $ (4,928) $ 26,600 $ 10,171 (Continued)

State of Louisiana

- 141 -

SPECIAL REVENUE FUNDS

LOUISIANA TOURISM

PROMOTION DISTRICT FUND

MARSH ISLAND OPERATING FUND

RETIREMENT SYSTEMS

INSURANCE PROCEEDS FUND

STATE HIGHWAY FUND #2

TRANSPORTATION TRUST FUND

TOTAL SPECIAL REVENUE FUNDS

$ -- $ -- $ -- $ -- $ 705,225 $ 705,225 26,352 -- -- -- -- 50,569 -- -- -- -- -- -- 13 129 -- -- -- 479 -- -- 66,921 12,891 -- 84,527 -- -- -- -- -- 5 26,365 129 66,921 12,891 705,225 840,805 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 66,921 7,095 -- 74,016 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 66,921 7,095 -- 74,016 26,365 129 -- 5,796 705,225 766,789 5,024 605 -- 1,299 600,594 607,522 (28,998) (756) -- (7,095) (1,293,379) (1,356,246) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 22 -- -- -- 22 (23,974) (129) -- (5,796) (692,785) (748,702) 2,391 -- -- -- 12,440 18,087 6,626 -- -- -- 374,465 411,927

$ 9,017 $ -- $ -- $ -- $ 386,905 $ 430,014

State of Louisiana

- 142 -

COMBINING STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2018 DEBT SERVICE FUNDS PERMANENT FUNDS (EXPRESSED IN THOUSANDS)

TOBACCO SETTLEMENT FINANCING

CORPORATION

TRANSPORTATION INFRASTRUCTURE

MODEL FOR ECONOMIC

DEVELOPMENT TOTAL DEBT

SERVICE FUNDS EDUCATION

EXCELLENCE FUND REVENUES:

INTERGOVERNMENTAL REVENUES $ -- $ -- $ -- $ --TAXES -- 120,369 120,369 --TOBACCO SETTLEMENT 93,043 -- 93,043 --USE OF MONEY & PROPERTY 887 798 1,685 --LICENSES, PERMITS & FEES -- -- -- --OTHER 37 -- 37 --

TOTAL REVENUES 93,967 121,167 215,134 -- EXPENDITURES:

CURRENT: GENERAL GOVERNMENT 99 -- 99 --CULTURE, RECREATION & TOURISM -- -- -- --TRANSPORTATION & DEVELOPMENT -- 8 8 --EDUCATION -- -- -- 165AGRICULTURE & FORESTRY -- -- -- --

INTERGOVERNMENTAL -- -- -- --CAPITAL OUTLAY -- -- -- --DEBT SERVICE:

PRINCIPAL 67,880 26,870 94,750 --INTEREST 27,445 114,248 141,693 --ISSUANCE COSTS & OTHER CHARGES -- 4,703 4,703 --

TOTAL EXPENDITURES 95,424 145,829 241,253 165 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (1,457) (24,662) (26,119) (165) OTHER FINANCING SOURCES (USES):

TRANSFERS IN -- 17,829 17,829 15,955TRANSFERS OUT -- (65) (65) (15,391)REFUNDING BONDS ISSUED -- 582,470 582,470 --PREMIUM ON REFUNDING BONDS ISSUED -- 56,499 56,499 --PAYMENTS TO REFUNDED BOND ESCROW AGENT -- (638,969) (638,969) --SALES OF GENERAL CAPITAL ASSETS -- -- -- --

TOTAL OTHER FINANCING SOURCES/(USES) -- 17,764 17,764 564 NET CHANGE IN FUND BALANCES (1,457) (6,898) (8,355) 399 FUND BALANCES AT BEGINNING OF YEAR 72,466 89,546 162,012 514,127 FUND BALANCES AT END OF YEAR $ 71,009 $ 82,648 $ 153,657 $ 514,526 (Concluded)

State of Louisiana

- 143 -

PERMANENT FUNDS

FULLER-EDWARDS ARBORETUM TRUST FUND

HEALTH EXCELLENCE FUND

W.R. IRBY BEQUEST FUND TOPS FUND

TOTAL PERMANENT FUNDS

TOTAL NONMAJOR GOVERNMENTAL

FUNDS

$ -- $ -- $ -- $ -- $ -- $ 705,225 -- -- -- -- -- 170,938 -- -- -- -- -- 93,043 2 -- -- -- 2 2,166 -- -- 1,798 -- 1,798 86,325 -- -- -- -- -- 42 2 -- 1,798 -- 1,800 1,057,739 -- -- -- -- -- 99 -- -- 1,528 -- 1,528 1,528 -- -- -- -- -- 8 -- -- -- -- 165 165 1 -- -- -- 1 1 -- -- -- 57,855 57,855 131,871 -- -- 4 -- 4 4 -- -- -- -- -- 94,750 -- -- -- -- -- 141,693 -- -- -- -- -- 4,703 1 -- 1,532 57,855 59,553 374,822 1 -- 266 (57,855) (57,753) 682,917 -- 25,719 -- 62,476 104,150 729,501 -- (26,129) -- (39) (41,559) (1,397,870) -- -- -- -- -- 582,470 -- -- -- -- -- 56,499 -- -- -- -- -- (638,969) -- -- -- -- -- 22 -- (410) -- 62,437 62,591 (668,347) 1 (410) 266 4,582 4,838 14,570 167 504,623 3,425 507,450 1,529,792 2,103,731

$ 168 $ 504,213 $ 3,691 $ 512,032 $ 1,534,630 $ 2,118,301

State of Louisiana

- 144 -

COMBINING STATEMENT OF NET POSITION NONMAJOR ENTERPRISE FUNDS JUNE 30, 2018 (EXPRESSED IN THOUSANDS)

BOARDS &

COMMISSIONS

CLEAN WATER STATE REVOLVING

LOAN FUND

DRINKING WATER REVOLVING LOAN

FUND

LOUISIANA AGRICULTURAL

FINANCE AUTHORITY


CASH & CASH EQUIVALENTS $ 46,326 $ 237,714 $ 108,988 $ 11,228INVESTMENTS 17,035 -- -- --RESTRICTED INVESTMENTS 33 -- -- --RECEIVABLES (NET) 877 1,191 1,323 684DUE FROM OTHER FUNDS -- -- -- 357INVENTORIES 3 -- -- --PREPAYMENTS 114 -- -- 47NOTES RECEIVABLE -- 20,795 8,915 310OTHER CURRENT ASSETS 385 -- -- --

TOTAL CURRENT ASSETS 64,773 259,700 119,226 12,626 NON-CURRENT ASSETS:

RESTRICTED ASSETS CASH 2,769 -- -- 1,776INVESTMENTS 1,179 -- -- --RECEIVABLES 3 -- -- --

INVESTMENTS 3,942 -- -- --RECEIVABLES (NET) -- -- -- 24NOTES RECEIVABLE -- 335,402 155,122 642CAPITAL ASSETS (NOTE 5)

LAND 2,557 -- -- 6,792BUILDING & IMPROVEMENTS (NET) 13,624 -- -- 23,342MACHINERY & EQUIPMENT (NET) 808 -- -- 3,328INFRASTRUCTURE (NET) -- -- -- --INTANGIBLE ASSETS (NET) 230 -- -- --CONSTRUCTION IN PROGRESS 306 -- -- 38

OTHER NONCURRENT ASSETS 473 -- -- 115TOTAL NON-CURRENT ASSETS 25,891 335,402 155,122 36,057

TOTAL ASSETS 90,664 595,102 274,348 48,683 DEFERRED OUTFLOWS OF RESOURCES

OPEB-RELATED DEFERRED OUTFLOWS OF RESOURCES 443 -- -- --PENSION-RELATED DEFERRED OUTFLOWS OF RESOURCES 9,643 -- -- --

TOTAL DEFERRED OUTFLOWS OF RESOURCES 10,086 -- -- -- LIABILITIES CURRENT LIABILITIES:

ACCOUNTS PAYABLE 2,144 30 -- 897ACCRUED INTEREST -- -- -- --DUE TO OTHER FUNDS -- 18 -- 1,384AMOUNTS HELD IN CUSTODY FOR OTHERS 11 -- -- --UNEARNED REVENUES 7,503 -- -- --OTHER CURRENT LIABILITIES 215 -- -- 3CURRENT PORTION OF LONG-TERM LIABILITIES:

COMPENSATED ABSENCES PAYABLE 274 -- -- --BONDS PAYABLE -- -- -- --OTHER LONG-TERM LIABILITIES 12 -- -- --

TOTAL CURRENT LIABILITIES 10,159 48 -- 2,284 NONCURRENT LIABILITIES:

NONCURRENT PORTION OF LONG-TERM LIABILITIES: COMPENSATED ABSENCES PAYABLE 1,054 -- -- --NOTES PAYABLE 750 -- -- --BONDS PAYABLE -- -- -- --TOTAL OPEB LIABILITY 23,005 -- -- --NET PENSION LIABILITY 47,996 -- -- --

TOTAL NON-CURRENT LIABILITIES 72,805 -- -- -- TOTAL LIABILITIES 82,964 48 -- 2,284 DEFERRED INFLOWS OF RESOURCES

DEFERRED AMOUNTS ON DEBT REFUNDING -- -- -- --OPEB-RELATED DEFERRED INFLOWS OF RESOURCES 1,417 -- -- --PENSION-RELATED DEFERRED INFLOWS OF RESOURCES 2,998 -- -- --

TOTAL DEFERRED INFLOWS OF RESOURCES 4,415 -- -- -- NET POSITION NET INVESTMENT IN CAPITAL ASSETS 17,525 -- -- 33,500RESTRICTED FOR OTHER PURPOSES 8,586 -- -- 1,776UNRESTRICTED (12,740) 595,054 274,348 11,123TOTAL NET POSITION $ 13,371 $ 595,054 $ 274,348 $ 46,399

State of Louisiana

- 145 -

LOUISIANA FEDERAL PROPERTY

ASSISTANCE AGENCY

LOUISIANA GULF OPPORTUNITY ZONE

LOAN FUND

LOUISIANA PROPERTY

ASSISTANCE AGENCY

LOUISIANA TRANSPORTATION

AUTHORITY PRISON

ENTERPRISES TOTAL NONMAJOR

ENTERPRISE FUNDS

$ 3,101 $ -- $ 1,315 $ -- $ 2,398 $ 411,070 -- -- -- -- -- 17,035 -- -- -- -- -- 33 124 -- 212 -- 2,536 6,947 -- -- -- -- -- 357 41 -- -- -- 6,550 6,594 -- -- -- -- 10 171 -- 12,296 -- -- -- 42,316 -- -- -- -- -- 385 3,266 12,296 1,527 -- 11,494 484,908 -- -- -- 218 -- 4,763 -- -- -- 20 -- 1,199 -- -- -- 368 -- 371 -- -- -- -- -- 3,942 -- -- -- -- -- 24 -- 125,283 -- -- -- 616,449 -- -- 526 -- -- 9,875 537 -- 418 690 808 39,419 58 -- 73 -- 5,566 9,833 -- -- -- 300,961 -- 300,961 -- -- -- -- -- 230 -- -- -- -- 88 432 -- -- -- -- -- 588 595 125,283 1,017 302,257 6,462 988,086 3,861 137,579 2,544 302,257 17,956 1,472,994 104 -- 134 -- 387 1,068 155 -- 920 -- 1,757 12,475 259 -- 1,054 -- 2,144 13,543 68 -- 1,442 8 2,696 7,285 -- -- -- 1,998 -- 1,998 -- -- -- -- -- 1,402 -- -- -- -- -- 11 -- -- -- -- 7 7,510 -- -- -- -- -- 218 2 -- 18 -- 22 316 -- -- -- 2,793 -- 2,793 -- -- -- -- -- 12 70 -- 1,460 4,799 2,725 21,545 25 -- 95 -- 455 1,629 -- -- 645 -- -- 1,395 -- -- -- 169,034 -- 169,034 2,144 -- 3,898 -- 13,309 42,356 995 -- 5,003 -- 11,235 65,229 3,164 -- 9,641 169,034 24,999 279,643 3,234 -- 11,101 173,833 27,724 301,188 -- -- -- 6,321 -- 6,321 113 -- 217 -- 965 2,712 209 -- 281 -- 535 4,023 322 -- 498 6,321 1,500 13,056 595 -- 1,017 123,503 6,462 182,602 -- -- -- -- -- 10,362 (31) 137,579 (9,018) (1,400) (15,586) 979,329

$ 564 $ 137,579 $ (8,001) $ 122,103 $ (9,124) $ 1,172,293

State of Louisiana

- 146 -

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION NONMAJOR ENTERPRISE FUNDS FOR THE YEAR ENDED JUNE 30, 2018 (EXPRESSED IN THOUSANDS)

BOARDS &

COMMISSIONS

CLEAN WATER STATE

REVOLVING LOAN FUND

DRINKING WATER

REVOLVING LOAN FUND


FINANCE AUTHORITY

OPERATING REVENUES:

SALES OF COMMODITIES & SERVICES $ 2,040 $ -- $ -- $ --ASSESSMENTS 5,196 -- -- --USE OF MONEY & PROPERTY 16 3,930 5,533 5,661LICENSES, PERMITS & FEES 35,738 -- -- --FEDERAL GRANTS & CONTRACTS -- 810 -- --OTHER 2,664 1,678 771 45

TOTAL OPERATING REVENUES 45,654 6,418 6,304 5,706 OPERATING EXPENSES:

COST OF SALES & SERVICES 13,869 3,183 3,754 2,332ADMINISTRATIVE 30,331 -- -- 1,963DEPRECIATION 702 -- -- 2,581AMORTIZATION 120 -- -- --

TOTAL OPERATING EXPENSES 45,022 3,183 3,754 6,876

OPERATING INCOME (LOSS) 632 3,235 2,550 (1,170) NONOPERATING REVENUES (EXPENSES)

INTERGOVERNMENTAL REVENUES 14 -- -- --INTERGOVERNMENTAL EXPENSES -- -- -- --GAIN ON SALE OF CAPITAL ASSETS -- -- -- 159LOSS ON SALE OF CAPITAL ASSETS -- -- -- (78)FEDERAL GRANTS -- -- -- 10,106INTEREST EXPENSE -- -- -- (90)OTHER REVENUES 2,744 -- -- 2OTHER EXPENSES (2,160) (371) (66) (9,539)

TOTAL NONOPERATING REVENUES (EXPENSES) 598 (371) (66) 560 INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS 1,230 2,864 2,484 (610)

CAPITAL CONTRIBUTIONS -- 13,117 11,534 --TRANSFERS IN -- -- -- 6,818TRANSFERS OUT -- (2,827) -- --

CHANGE IN NET POSITION 1,230 13,154 14,018 6,208 TOTAL NET POSITION - BEGINNING AS RESTATED 12,141 581,900 260,330 40,191 TOTAL NET POSITION - ENDING $ 13,371 $ 595,054 $ 274,348 $ 46,399

State of Louisiana

- 147 -


ASSISTANCE AGENCY

LOUISIANA GULF OPPORTUNITY

ZONE LOAN FUND

LOUISIANA PROPERTY

ASSISTANCE AGENCY


AUTHORITY PRISON


ENTERPRISE FUNDS

$ 1,674 $ -- $ 6,783 $ -- $ 27,736 $ 38,233 -- -- -- -- -- 5,196 48 -- -- -- -- 15,188 -- -- -- 4,931 -- 40,669 -- -- -- -- -- 810 -- -- -- -- -- 5,158 1,722 -- 6,783 4,931 27,736 105,254 216 -- 2,062 -- 14,411 39,827 1,103 -- 4,957 23 10,883 49,260 22 -- 63 9,429 752 13,549 -- -- -- -- -- 120 1,341 -- 7,082 9,452 26,046 102,756 381 -- (299) (4,521) 1,690 2,498 -- -- -- -- -- 14 -- -- -- -- (1,097) (1,097) -- -- -- -- 956 1,115 -- -- -- -- (1,583) (1,661) -- -- -- -- -- 10,106 -- -- (4) (4,834) -- (4,928) 93 -- 20 29 164 3,052 -- -- -- -- (185) (12,321) 93 -- 16 (4,805) (1,745) (5,720) 474 -- (283) (9,326) (55) (3,222) -- -- -- 301 -- 24,952 -- -- -- 6,244 -- 13,062 -- (43,414) -- (5,762) -- (52,003) 474 (43,414) (283) (8,543) (55) (17,211) 90 180,993 (7,718) 130,646 (9,069) 1,189,504

$ 564 $ 137,579 $ (8,001) $ 122,103 $ (9,124) $ 1,172,293

State of Louisiana

- 148 -

COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS FOR THE YEAR ENDED JUNE 30, 2018 (EXPRESSED IN THOUSANDS)

BOARDS &

COMMISSIONS

CLEAN WATER STATE

REVOLVING LOAN FUND

DRINKING WATER

REVOLVING LOAN FUND


FINANCE AUTHORITY

CASH FLOWS FROM OPERATING ACTIVITIES:

RECEIPTS FROM CUSTOMERS $ 48,418 $ -- $ -- $ 6,323RECEIPTS FROM INTERFUND SERVICES PROVIDED 3 -- -- --RECEIPTS FROM INTERFUND REIMBURSEMENTS -- -- -- 45RECEIPTS OF PRINCIPAL/INTEREST FROM LOAN PROGRAMS 750 25,799 15,786 --OTHER OPERATING RECEIPTS 4,723 4,239 -- --PAYMENTS TO SUPPLIERS & SERVICE PROVIDERS (23,911) -- -- (2,200)PAYMENTS FOR LOANS MADE UNDER LOAN PROGRAMS (25) (59,891) (30,518) --PAYMENTS TO EMPLOYEES FOR SERVICES (21,748) -- -- --PAYMENTS FOR INTERFUND SERVICES USED -- -- -- (1,963)OTHER OPERATING PAYMENTS (108) -- -- --

NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 8,102 (29,853) (14,732) 2,205 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

PROCEEDS FROM THE ISSUANCE OF NON-CAPITAL DEBT -- 27,310 2,488 304RECEIPTS FROM OPERATING GRANTS -- -- -- 9,837RECEIPTS FOR PRINCIPAL AND INTEREST DEBT SERVICE -- -- -- --RECEIPTS FROM OTHER FUNDS 4,537 -- -- 6,820PAYMENTS FOR PRINCIPAL ON NON-CAPITAL DEBT -- (27,400) (2,500) --PAYMENTS FOR INTEREST ON NON-CAPITAL DEBT -- (2) (54) --PAYMENTS FOR GRANTS AND SUBSIDIES -- -- -- (8,779)PAYMENTS TO OTHER FUNDS (4,247) (3,088) -- (56)

NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES 290 (3,180) (66) 8,126 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

RECEIPTS FROM CAPITAL GRANTS -- 13,117 11,534 --PROCEEDS FROM THE SALE OF CAPITAL ASSETS -- -- -- 131PAYMENTS TO ACQUIRE, CONSTRUCT, & IMPROVE CAPITAL ASSETS (1,388) -- -- (3,022)PAYMENTS FOR PRINCIPAL ON CAPITAL DEBT -- -- -- (8,735)PAYMENTS FOR INTEREST ON CAPITAL DEBT -- -- -- (229)

NET CASH PROVIDED (USED) FOR CAPITAL AND RELATED FINANCING ACTIVITIES (1,388) 13,117 11,534 (11,855)


PURCHASES OF INVESTMENTS (11,748) -- -- --PROCEEDS FROM THE SALE OF INVESTMENTS 6,995 -- -- --INTEREST AND DIVIDENDS 255 -- -- --

NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES (4,498) -- -- -- NET INCREASE/(DECREASE) IN CASH & CASH EQUIVALENTS 2,506 (19,916) (3,264) (1,524) CASH & CASH EQUIVALENTS AT BEGINNING OF YEAR AS RESTATED 46,589 257,630 112,252 14,528 CASH & CASH EQUIVALENTS AT END OF YEAR $ 49,095 $ 237,714 $ 108,988 $ 13,004 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: OPERATING INCOME (LOSS) $ 632 $ 3,235 $ 2,550 $ (1,170) ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:

DEPRECIATION/AMORTIZATION 822 -- -- 2,581NONEMPLOYER CONTRIBUTING ENTITY REVENUE -- -- -- --OTHER 49 -- -- --CHANGES IN ASSETS AND LIABILITIES:

(INCREASE)/DECREASE IN ACCOUNTS RECEIVABLE 29 (135) (239) 144(INCREASE)/DECREASE IN DUE FROM OTHER FUNDS 27 -- -- 523(INCREASE)/DECREASE IN PREPAYMENTS (54) -- -- --(INCREASE)/DECREASE IN INVENTORIES 2 -- -- --(INCREASE)/DECREASE IN OTHER ASSETS 5 (32,953) (17,043) 73(INCREASE)/DECREASE IN DEFERRED OUTFLOWS RELATED TO OPEB (194) -- -- --(INCREASE)/DECREASE IN DEFERRED OUTFLOWS RELATED TO PENSIONS 4,132 -- -- --INCREASE/(DECREASE) IN ACCOUNTS PAYABLE & ACCRUALS 10 -- -- 59INCREASE/(DECREASE) IN COMPENSATED ABSENCES 55 -- -- --INCREASE/(DECREASE) IN DUE TO OTHER FUNDS (33) -- -- --INCREASE/(DECREASE) IN UNEARNED REVENUES 4,922 -- -- (5)INCREASE/(DECREASE) IN TOTAL OPEB LIABILITY (822) -- -- --INCREASE/(DECREASE) IN NET PENSION LIABILITY (4,203) -- -- --INCREASE/(DECREASE) IN OTHER LIABILITIES 845 -- -- --INCREASE/(DECREASE) IN DEFERRED INFLOWS RELATED TO OPEB 1,240 -- -- --INCREASE/(DECREASE) IN DEFERRED INFLOWS RELATED TO PENSIONS 638 -- -- --

NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ 8,102 $ (29,853) $ (14,732) $ 2,205 (Continued)

State of Louisiana

- 149 -


ASSISTANCE AGENCY

LOUISIANA GULF OPPORTUNITY ZONE

LOAN FUND

LOUISIANA PROPERTY

ASSISTANCE AGENCY


AUTHORITY PRISON


ENTERPRISE FUNDS

$ 1,639 $ -- $ 6,254 $ 4,858 $ 28,047 $ 95,539 48 -- -- -- -- 51 -- -- -- -- -- 45 -- -- -- -- -- 42,335 57 -- -- -- -- 9,019 (858) -- (1,280) (23) (20,193) (48,465) -- -- -- -- -- (90,434) (444) -- (2,002) -- (6,771) (30,965) (160) -- (2,713) -- -- (4,836) -- -- -- -- -- (108) 282 -- 259 4,835 1,083 (27,819) -- -- -- -- -- 30,102 -- -- -- -- -- 9,837 -- 43,414 -- -- -- 43,414 -- -- 82 6,244 -- 17,683 -- -- -- -- -- (29,900) -- -- -- -- -- (56) -- -- -- -- -- (8,779) -- (43,414) -- (5,762) -- (56,567) -- -- 82 482 -- 5,734 -- -- -- -- -- 24,651 -- -- -- -- 1,057 1,188 -- -- -- -- (1,438) (5,848) -- -- -- (855) -- (9,590) -- -- -- (5,365) -- (5,594) -- -- -- (6,220) (381) 4,807 -- -- -- (11,078) -- (22,826) -- -- -- 12,005 -- 19,000 35 -- 7 29 33 359 35 -- 7 956 33 (3,467) 317 -- 348 53 735 (20,745) 2,784 -- 967 165 1,663 436,578

$ 3,101 $ -- $ 1,315 $ 218 $ 2,398 $ 415,833

$ 381 $ -- $ (299) $ (4,521) $ 1,690 $ 2,498 22 -- 63 9,429 752 13,669 -- -- -- -- 1 1 (1) -- (51) -- (1,357) (1,360) (77) -- (100) (73) 306 (145) -- -- -- -- -- 550 -- -- -- -- (1) (55) (39) -- -- -- 300 263 (1) -- -- -- -- (49,919) (104) -- (133) -- (287) (718) 180 -- 383 -- 1,274 5,969 34 -- 624 -- (449) 278 1 -- (10) -- 15 61 -- -- -- -- -- (33) -- -- -- -- -- 4,917 -- -- (171) -- (585) (1,578) (436) -- (212) -- (1,595) (6,446) 16 -- -- -- 6 867 113 -- 217 -- 965 2,535 193 -- (52) -- 48 827

$ 282 $ -- $ 259 $ 4,835 $ 1,083 $ (27,819)

State of Louisiana

- 150 -

COMBINING STATEMENT OF CASH FLOWS

NONMAJOR ENTERPRISE FUNDS



NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES

2018

LOUISIANA AGRICULTURAL FINANCE AUTHORITY GAIN ON DISPOSAL OF CAPITAL ASSETS 159 LOSS ON DISPOSAL OF CAPITAL ASSETS (78)

LOUISIANA TRANSPORTATION AUTHORITY CONTRIBUTIONS OF CAPITAL ASSETS 301

PRISON ENTERPRISES GAIN ON DISPOSAL OF CAPITAL ASSETS 956 LOSS ON DISPOSAL OF CAPITAL ASSETS (1,583)

(Concluded)

- 151 -

State of Louisiana

- 152 -

COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS JUNE 30, 2018 (EXPRESSED IN THOUSANDS)

DIVISION OF ADMINISTRATIVE

LAW

LOUISIANA CORRECTIONAL

FACILITIES CORPORATION

OFFICE FACILITIES CORPORATION


CASH & CASH EQUIVALENTS $ 1,383 $ 39 $ 444INVESTMENTS -- 425 13,498RESTRICTED INVESTMENTS -- -- 25,393RECEIVABLES (NET) -- -- --DUE FROM OTHER FUNDS 69 -- --INVENTORIES -- -- --PREPAYMENTS -- -- --

TOTAL CURRENT ASSETS 1,452 464 39,335 NON-CURRENT ASSETS:

RESTRICTED ASSETS INVESTMENTS -- 2,406 --

CAPITAL ASSETS (NOTE 5) LAND -- -- 301MACHINERY & EQUIPMENT (NET) 62 -- --

OTHER NONCURRENT ASSETS -- -- 29TOTAL NON-CURRENT ASSETS 62 2,406 330

TOTAL ASSETS 1,514 2,870 39,665 DEFERRED OUTFLOWS OF RESOURCES

OPEB-RELATED DEFERRED OUTFLOWS OF RESOURCES 164 -- --PENSION-RELATED DEFERRED OUTFLOWS OF RESOURCES 1,842 -- --

TOTAL DEFERRED OUTFLOWS OF RESOURCES 2,006 -- -- LIABILITIES CURRENT LIABILITIES:

ACCOUNTS PAYABLE 281 -- --DUE TO OTHER FUNDS 5 -- --UNEARNED REVENUES 54 -- 115OTHER CURRENT LIABILITIES -- -- --

CURRENT PORTION OF LONG-TERM LIABILITIES: CONTRACTS PAYABLE -- -- --COMPENSATED ABSENCES PAYABLE 36 -- --NOTES PAYABLE -- -- --OTHER LONG-TERM LIABILITIES -- -- 58

TOTAL CURRENT LIABILITIES 376 -- 173 NONCURRENT LIABILITIES: NONCURRENT PORTION OF LONG-TERM LIABILITIES:

COMPENSATED ABSENCES PAYABLE 336 -- --NOTES PAYABLE -- -- --TOTAL OPEB LIABILITY 6,082 -- --NET PENSION LIABILITY 12,698 -- --

TOTAL NON-CURRENT LIABILITIES 19,116 -- -- TOTAL LIABILITIES 19,492 -- 173 DEFERRED INFLOWS OF RESOURCES

OPEB-RELATED DEFERRED INFLOWS OF RESOURCES 321 -- --PENSION-RELATED DEFERRED INFLOWS OF RESOURCES 388 -- --

TOTAL DEFERRED INFLOWS OF RESOURCES 709 -- -- NET POSITION NET INVESTMENT IN CAPITAL ASSETS 62 -- 301RESTRICTED FOR DEBT SERVICE -- 2,406 25,393UNRESTRICTED (16,743) 464 13,798TOTAL NET POSITION $ (16,681) $ 2,870 $ 39,492

State of Louisiana

- 153 -

OFFICE OF

AIRCRAFT SERVICES

OFFICE OF STATE HUMAN CAPITAL MANAGEMENT

OFFICE OF STATE PROCUREMENT

OFFICE OF TECHNOLOGY

SERVICES TOTAL INTERNAL SERVICE FUNDS

$ 239 $ 226 $ 3,304 $ -- $ 5,635 -- -- -- -- 13,923 -- -- -- -- 25,393 178 -- 146 44,617 44,941 -- -- -- -- 69 265 -- -- 4,293 4,558 -- -- -- 3,865 3,865 682 226 3,450 52,775 98,384 -- -- -- -- 2,406 -- -- -- -- 301 -- -- -- 12,162 12,224 -- -- -- -- 29 -- -- -- 12,162 14,960 682 226 3,450 64,937 113,344 21 -- 119 1,801 2,105 73 -- 8,591 24,644 35,150 94 -- 8,710 26,445 37,255 212 -- 358 22,738 23,589 -- 226 -- 31,000 31,231 -- -- -- 7,557 7,726 -- -- -- 1,494 1,494 -- -- -- 8,707 8,707 10 -- 46 395 487 -- -- -- 4,443 4,443 -- -- -- -- 58 222 226 404 76,334 77,735 17 -- 451 5,378 6,182 -- -- -- 8,863 8,863 652 -- 7,947 119,997 134,678 331 -- 17,277 169,295 199,601

1,000 -- 25,675 303,533 349,324 1,222 226 26,079 379,867 427,059 44 -- 576 8,193 9,134 326 -- 412 6,306 7,432 370 -- 988 14,499 16,566 -- -- -- (1,144) (781) -- -- -- -- 27,799 (816) -- (14,907) (301,840) (320,044)

$ (816) $ -- $ (14,907) $ (302,984) $ (293,026)

State of Louisiana

- 154 -

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS FOR THE YEAR ENDED JUNE 30, 2018 (EXPRESSED IN THOUSANDS)


LAW




OPERATING REVENUES:

SALES OF COMMODITIES & SERVICES $ 7,444 $ -- $ --USE OF MONEY & PROPERTY -- -- 23,679LICENSES, PERMITS & FEES 8 -- --

TOTAL OPERATING REVENUES 7,452 -- 23,679 OPERATING EXPENSES:

COST OF SALES & SERVICES 1,086 132 --ADMINISTRATIVE 5,952 32 24,202DEPRECIATION 10 -- --

TOTAL OPERATING EXPENSES 7,048 164 24,202

OPERATING INCOME (LOSS) 404 (164) (523) NONOPERATING REVENUES (EXPENSES)

LOSS ON SALE OF CAPITAL ASSETS -- -- (68)INTEREST EXPENSE -- -- (5)OTHER REVENUES 23 35 702OTHER EXPENSES -- -- --

TOTAL NONOPERATING REVENUES (EXPENSES) 23 35 629

INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS 427 (129) 106

TRANSFERS OUT -- -- -- CHANGE IN NET POSITION 427 (129) 106 TOTAL NET POSITION - BEGINNING AS RESTATED (17,108) 2,999 39,386 TOTAL NET POSITION - ENDING $ (16,681) $ 2,870 $ 39,492

State of Louisiana

- 155 -

OFFICE OF

AIRCRAFT SERVICES





$ 1,667 $ -- $ 7,154 $ 322,211 $ 338,476 -- -- -- -- 23,679 -- -- 2,855 -- 2,863 1,667 -- 10,009 322,211 365,018 1,274 -- -- 38,005 40,497 355 -- 15,653 324,908 371,102 6 -- -- 2,575 2,591 1,635 -- 15,653 365,488 414,190 32 -- (5,644) (43,277) (49,172) -- -- -- (1,082) (1,150) -- -- -- (42) (47) 3 -- 63 96 922 -- (223) -- -- (223) 3 (223) 63 (1,028) (498) 35 (223) (5,581) (44,305) (49,670) -- (226) -- -- (226) 35 (449) (5,581) (44,305) (49,896) (851) 449 (9,326) (258,679) (243,130)

$ (816) $ -- $ (14,907) $ (302,984) $ (293,026)

State of Louisiana

- 156 -

COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE YEAR ENDED JUNE 30, 2018 (EXPRESSED IN THOUSANDS)


LAW




CASH FLOWS FROM OPERATING ACTIVITIES:

RECEIPTS FROM CUSTOMERS $ -- $ -- $ 23,679RECEIPTS FROM INTERFUND SERVICES PROVIDED 7,796 -- --PAYMENTS TO SUPPLIERS & SERVICE PROVIDERS (1,040) (164) (24,202)PAYMENTS TO EMPLOYEES FOR SERVICES (6,266) -- --PAYMENTS FOR INTERFUND SERVICES USED -- -- --

NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 490 (164) (523) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

RECEIPTS FROM OTHER FUNDS 22 -- --PAYMENTS TO OTHER FUNDS -- -- --

NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES 22 -- -- CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

PAYMENTS TO ACQUIRE, CONSTRUCT, & IMPROVE CAPITAL ASSETS (30) -- --NET CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES (30) -- --


PURCHASES OF INVESTMENTS -- (5,677) (2,228)PROCEEDS FROM THE SALE OF INVESTMENTS -- 5,808 --INTEREST AND DIVIDENDS -- 35 702

NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES -- 166 (1,526) NET INCREASE/(DECREASE) IN CASH & CASH EQUIVALENTS 482 2 (2,049) CASH & CASH EQUIVALENTS AT BEGINNING OF YEAR AS RESTATED 901 37 2,493 CASH & CASH EQUIVALENTS AT END OF YEAR $ 1,383 $ 39 $ 444 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH

PROVIDED (USED) BY OPERATING ACTIVITIES: OPERATING INCOME (LOSS) $ 404 $ (164) $ (523) ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:

DEPRECIATION/AMORTIZATION 10 -- --CHANGES IN ASSETS AND LIABILITIES:

(INCREASE)/DECREASE IN ACCOUNTS RECEIVABLE 2,414 -- (11)(INCREASE)/DECREASE IN DUE FROM OTHER FUNDS (69) -- --(INCREASE)/DECREASE IN PREPAYMENTS -- -- 5(INCREASE)/DECREASE IN INVENTORIES -- -- --(INCREASE)/DECREASE IN OTHER ASSETS -- -- 202(INCREASE)/DECREASE IN DEFERRED OUTFLOWS RELATED TO OPEB 40 -- --(INCREASE)/DECREASE IN DEFERRED OUTFLOWS RELATED TO PENSIONS 1,162 -- --INCREASE/(DECREASE) IN ACCOUNTS PAYABLE & ACCRUALS 41 -- (138)INCREASE/(DECREASE) IN COMPENSATED ABSENCES 49 -- --INCREASE/(DECREASE) IN DUE TO OTHER FUNDS (2,050) -- --INCREASE/(DECREASE) IN UNEARNED REVENUES 54 -- (58)INCREASE/(DECREASE) IN TOTAL OPEB LIABILITY (267) -- --INCREASE/(DECREASE) IN NET PENSION LIABILITY (1,469) -- --INCREASE/(DECREASE) IN OTHER LIABILITIES (45) -- --INCREASE/(DECREASE) IN DEFERRED INFLOWS RELATED TO OPEB 321 -- --INCREASE/(DECREASE) IN DEFERRED INFLOWS RELATED TO PENSIONS (105) -- --

NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ 490 $ (164) $ (523)

State of Louisiana

- 157 -

OFFICE OF AIRCRAFT SERVICES





$ -- $ -- $ -- $ 689 $ 24,368 1,599 -- 7,188 277,320 293,903 (1,585) -- (202) (114,249) (141,442) (189) -- (8,673) (155,929) (171,057) -- -- (2,151) (16,892) (19,043) (175) -- (3,838) (9,061) (13,271) -- -- 2,857 12 2,891 -- (223) -- -- (223) -- (223) 2,857 12 2,668 -- -- -- -- (30) -- -- -- -- (30) -- -- -- -- (7,905) -- -- -- -- 5,808 3 -- 62 84 886 3 -- 62 84 (1,211) (172) (223) (919) (8,965) (11,844) 411 449 4,223 8,965 17,479

$ 239 $ 226 $ 3,304 $ -- $ 5,635

$ 32 $ -- $ (5,644) $ (43,277) $ (49,172) 6 -- -- 2,575 2,591 (69) -- (93) (22,951) (20,710) -- -- -- -- (69) -- -- -- (1,330) (1,325) (153) -- -- (2,955) (3,108) -- -- -- -- 202 (12) -- (26) (237) (235) 116 -- 3,273 74,006 78,557 146 -- (747) (2,733) (3,431) 9 -- 12 (4) 66 -- -- -- -- (2,050) -- -- -- 7,557 7,553 (29) -- (350) (5,277) (5,923) (581) -- (405) (19,206) (21,661) -- -- (186) (1,018) (1,249) 44 -- 576 8,193 9,134 316 -- (248) (2,404) (2,441)

$ (175) $ -- $ (3,838) $ (9,061) $ (13,271)

State of Louisiana

- 158 -

COMBINING STATEMENT OF FIDUCIARY NET POSITION

PENSION TRUST FUNDS

JUNE 30, 2018


LOUISIANA SCHOOL

EMPLOYEES' RETIREMENT

SYSTEM

LOUISIANA STATE


SYSTEM

LOUISIANA STATE POLICE RETIREMENT

SYSTEM

TEACHERS' RETIREMENT SYSTEM OF LOUISIANA

TOTAL PENSION

TRUST FUNDS ASSETS CASH & CASH EQUIVALENTS $ 51,848 $ 176,067 $ 74 $ 277,091 $ 505,080 RECEIVABLES:

EMPLOYER CONTRIBUTIONS 13,425 54,460 1,775 193,088 262,748MEMBER CONTRIBUTIONS 3,129 11,906 270 59,497 74,802INVESTMENT PROCEEDS 967 82,141 -- 2,247,597 2,330,705INTEREST & DIVIDENDS 2,459 41,561 482 42,971 87,473OTHER 614 3,932 -- 14,423 18,969

TOTAL RECEIVABLES 20,594 194,000 2,527 2,557,576 2,774,697


SHORT-TERM INVESTMENTS 25,384 122,387 51,549 1,076,811 1,276,131U.S. GOVERNMENT AND AGENCY OBLIGATIONS 41,468 209,935 13,818 1,246,922 1,512,143BONDS - DOMESTIC 293,042 724,597 112,140 1,124,482 2,254,261BONDS - INTERNATIONAL 158,585 501,059 26,956 1,278,291 1,964,891EQUITIES - DOMESTIC 452,678 2,909,424 374,914 6,321,370 10,058,386EQUITIES - INTERNATIONAL 653,991 3,903,380 173,061 3,635,794 8,366,226ALTERNATIVE INVESTMENTS 254,054 3,132,410 112,313 6,465,934 9,964,711COLLATERAL HELD UNDER SECURITIES LENDING PROGRAM 109,783 1,545,233 49,082 3,266,109 4,970,207OTHER INVESTMENTS 2,547 -- -- -- 2,547

INVESTMENTS (AT CONTRACT VALUE): SYNTHETIC GUARANTEED INVESTMENT CONTRACT -- 509,753 -- -- 509,753

TOTAL INVESTMENTS 1,991,532 13,558,178 913,833 24,415,713 40,879,256

OTHER ASSETS 318 -- 1 -- 319 PROPERTY PLANT AND EQUIPMENT (NET) 3,239 5,937 1,228 3,402 13,806

TOTAL ASSETS 2,067,531 13,934,182 917,663 27,253,782 44,173,158 DEFERRED OUTFLOWS OF RESOURCES OPEB-RELATED DEFERRED OUTFLOWS OF RESOURCES 217 316 1 603 1,137PENSION-RELATED DEFERRED OUTFLOWS OF RESOURCES -- -- 191 2,421 2,612

TOTAL DEFERRED OUTFLOWS OF RESOURCES 217 316 192 3,024 3,749

LIABILITIES ACCOUNTS PAYABLE 547 13,793 816 11,465 26,621RETIREMENT BENEFITS PAYABLE 2,970 -- -- 4,827 7,797INVESTMENT COMMITMENTS PAYABLE 875 72,120 -- 2,875,472 2,948,467OBLIGATIONS UNDER SECURITIES LENDING PROGRAM 109,783 1,545,178 49,082 3,266,109 4,970,152TOTAL OPEB LIABILITY 7,086 18,489 314 26,100 51,989NET PENSION LIABILITY -- -- 1,182 16,581 17,763REFUNDS PAYABLE -- -- -- 5,977 5,977OTHER LIABILITIES -- -- 101 1,524 1,625

TOTAL LIABILITIES 121,261 1,649,580 51,495 6,208,055 8,030,391


OPEB-RELATED DEFERRED INFLOWS OF RESOURCES 374 1,205 25 1,535 3,139PENSION-RELATED DEFERRED INFLOWS OF RESOURCES -- -- 26 514 540

TOTAL DEFERRED INFLOWS OF RESOURCES 374 1,205 51 2,049 3,679 NET POSITION RESTRICTED FOR PENSIONS $ 1,946,113 $ 12,283,713 $ 866,309 $ 21,046,702 $ 36,142,837

State of Louisiana

- 159 -

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

PENSION TRUST FUNDS



LOUISIANA SCHOOL


SYSTEM

LOUISIANA STATE


SYSTEM

LOUISIANA STATE POLICE RETIREMENT

SYSTEM

TEACHERS' RETIREMENT SYSTEM OF LOUISIANA

TOTAL PENSION

TRUST FUNDS ADDITIONS CONTRIBUTIONS:

EMPLOYER $ 81,587 $ 729,479 $ 47,923 $ 1,203,702 $ 2,062,691MEMBER 22,366 152,190 7,554 337,929 520,039NON-EMPLOYER -- -- -- 39,550 39,550

TOTAL CONTRIBUTIONS 103,953 881,669 55,477 1,581,181 2,622,280 INVESTMENT INCOME:

NET INCREASE IN FAIR VALUE OF INVESTMENTS 110,659 533,510 67,124 2,011,519 2,722,812INTEREST & DIVIDENDS 13,467 231,484 9,109 335,931 589,991ALTERNATIVE INVESTMENT INCOME (LOSS) 4,526 314,426 -- (109,346) 209,606LESS ALTERNATIVE INVESTMENT EXPENSES (3,494) (41,694) -- (63,315) (108,503)SECURITIES LENDING INCOME 1,743 20,411 149 36,862 59,165LESS SECURITIES LENDING EXPENSES (1,374) (14,499) -- (26,784) (42,657)OTHER INVESTMENT INCOME (LOSS) -- 3,650 -- (6) 3,644LESS INVESTMENT EXPENSES OTHER THAN

ALTERNATIVE INVESTMENTS AND SECURITIES LENDING (7,387) (35,750) (2,389) (46,989) (92,515)

NET INVESTMENT INCOME 118,140 1,011,538 73,993 2,137,872 3,341,543 OTHER INCOME -- 15,199 3,755 11,411 30,365

TOTAL ADDITIONS 222,093 1,908,406 133,225 3,730,464 5,994,188 DEDUCTIONS RETIREMENT BENEFITS 185,260 1,317,635 48,834 2,118,971 3,670,700REFUNDS OF CONTRIBUTIONS 4,844 35,192 1 48,671 88,708ADMINISTRATIVE EXPENSES 4,104 24,258 741 29,065 58,168DEPRECIATION & AMORTIZATION EXPENSES 270 884 31 401 1,586OTHER 537 -- -- -- 537

TOTAL DEDUCTIONS 195,015 1,377,969 49,607 2,197,108 3,819,699 CHANGE IN NET POSITION 27,078 530,437 83,618 1,533,356 2,174,489 NET POSITION RESTRICTED FOR PENSIONS

BEGINNING OF YEAR AS RESTATED 1,919,035 11,753,276 782,691 19,513,346 33,968,348

END OF YEAR $ 1,946,113 $ 12,283,713 $ 866,309 $ 21,046,702 $ 36,142,837

State of Louisiana

- 160 -

COMBINING STATEMENT OF FIDUCIARY NET POSITION INVESTMENT TRUST FUNDS JUNE 30, 2018 (EXPRESSED IN THOUSANDS)

EDUCATION EXCELLENCE LOCAL

GOVERNMENT INVESTMENT TRUST

FUND

LOUISIANA ASSET MANAGEMENT

POOL *

TOTAL INVESTMENT

TRUST FUNDS ASSETS CASH & CASH EQUIVALENTS $ -- $ 5,644 $ 5,644 RECEIVABLES:

INTEREST & DIVIDENDS 86 405 491OTHER 166 -- 166

TOTAL RECEIVABLES 252 405 657


SHORT-TERM INVESTMENTS -- 726,941 726,941U.S. GOVERNMENT AND AGENCY OBLIGATIONS 15,295 645,780 661,075BONDS - DOMESTIC 5,764 -- 5,764REPURCHASE AGREEMENTS -- 107,313 107,313OTHER INVESTMENTS 31,648 -- 31,648

TOTAL INVESTMENTS 52,707 1,480,034 1,532,741

OTHER ASSETS -- 14 14 PROPERTY PLANT AND EQUIPMENT (NET) -- 37 37

TOTAL ASSETS 52,959 1,486,134 1,539,093 LIABILITIES ACCOUNTS PAYABLE 106 127 233OTHER LIABILITIES -- 59 59

TOTAL LIABILITIES 106 186 292 NET POSITION HELD IN TRUST FOR

INVESTMENT POOL PARTICIPANTS $ 52,853 $ 1,485,948 $ 1,538,801 * For the period ending December 31, 2017.

State of Louisiana

- 161 -

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION INVESTMENT TRUST FUNDS FOR THE YEAR ENDED JUNE 30, 2018 (EXPRESSED IN THOUSANDS)

EDUCATION EXCELLENCE LOCAL

GOVERNMENT INVESTMENT TRUST

FUND

LOUISIANA ASSET MANAGEMENT

POOL *

TOTAL INVESTMENT

TRUST FUNDS ADDITIONS CONTRIBUTIONS:

POOL PARTICIPANTS (DEPOSITS) $ 15,294 $ 2,225,276 $ 2,240,570 TOTAL CONTRIBUTIONS 15,294 2,225,276 2,240,570 INVESTMENT INCOME:

NET DECREASE IN FAIR VALUE OF INVESTMENTS (503) (128) (631)INTEREST & DIVIDENDS 809 7,105 7,914GAIN ON SALE OF INVESTMENTS -- 7 7OTHER INVESTMENT INCOME -- 9,428 9,428

NET INVESTMENT INCOME 306 16,412 16,718

OTHER INCOME 56 -- 56

TOTAL ADDITIONS 15,656 2,241,688 2,257,344 DEDUCTIONS ADMINISTRATIVE EXPENSES 70 2,048 2,118DISTRIBUTIONS TO POOL PARTICIPANTS 15,822 1,965,129 1,980,951

TOTAL DEDUCTIONS 15,892 1,967,177 1,983,069 CHANGE IN NET POSITION (236) 274,511 274,275 NET POSITION HELD IN TRUST FOR

INVESTMENT POOL PARTICIPANTS

BEGINNING OF YEAR 53,089 1,211,437 1,264,526

END OF YEAR $ 52,853 $ 1,485,948 $ 1,538,801 * For the period ending December 31, 2017.

State of Louisiana

- 162 -

COMBINING STATEMENT OF FIDUCIARY NET POSITION PRIVATE-PURPOSE TRUST FUNDS JUNE 30, 2018 (EXPRESSED IN THOUSANDS)

ACHIEVING A BETTER LIFE EXPERIENCE IN LOUISIANA FUND *

LOUISIANA EDUCATION TUITION & SAVINGS

FUND *

TOTAL PRIVATE-PURPOSE TRUST

FUNDS ASSETS

CASH & CASH EQUIVALENTS $ 35 $ 34,743 $ 34,778 RECEIVABLES:

INTEREST & DIVIDENDS -- 677 677

TOTAL RECEIVABLES -- 677 677 INVESTMENTS (AT FAIR VALUE):

U.S. GOVERNMENT AND AGENCY OBLIGATIONS 42 165,543 165,585 BONDS - DOMESTIC 4 46,785 46,789 EQUITIES - DOMESTIC 54 552,596 552,650 EQUITIES - INTERNATIONAL -- 31,630 31,630

TOTAL INVESTMENTS 100 796,554 796,654

TOTAL ASSETS 135 831,974 832,109

LIABILITIES ACCOUNTS PAYABLE -- 384 384

TOTAL LIABILITIES -- 384 384 NET POSITION HELD IN TRUST FOR INDIVIDUALS, PRIVATE

ORGANIZATIONS, AND OTHER GOVERNMENTS $ 135 $ 831,590 $ 831,725 * For the period ending December 31, 2017.

State of Louisiana

- 163 -

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION PRIVATE-PURPOSE TRUST FUNDS FOR THE YEAR ENDED JUNE 30, 2018 (EXPRESSED IN THOUSANDS)

ACHIEVING A BETTER LIFE EXPERIENCE IN LOUISIANA FUND *

LOUISIANA EDUCATION TUITION & SAVINGS

FUND *

TOTAL PRIVATE-PURPOSE TRUST

FUNDS ADDITIONS CONTRIBUTIONS:

POOL PARTICIPANTS (DEPOSITS) $ 135 $ 86,626 $ 86,761 TOTAL CONTRIBUTIONS 135 86,626 86,761 INVESTMENT INCOME:

NET INCREASE IN FAIR VALUE OF INVESTMENTS -- 71,377 71,377 INTEREST & DIVIDENDS 2 16,840 16,842

NET INVESTMENT INCOME 2 88,217 88,219

TOTAL ADDITIONS 137 174,843 174,980

DEDUCTIONS DISTRIBUTIONS TO POOL PARTICIPANTS 2 47,494 47,496

TOTAL DEDUCTIONS 2 47,494 47,496 CHANGE IN NET POSITION 135 127,349 127,484 NET POSITION HELD IN TRUST FOR INDIVIDUALS, PRIVATE

ORGANIZATIONS, AND OTHER GOVERNMENTS

BEGINNING OF YEAR -- 704,241 704,241

END OF YEAR $ 135 $ 831,590 $ 831,725 * For the period ending December 31, 2017.

State of Louisiana

- 164 -

COMBINING STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES AGENCY FUNDS JUNE 30, 2018 (EXPRESSED IN THOUSANDS)

DEBT SERVICE RESERVE

FUND ESCROW FUND FREE SCHOOL

FUND INSURANCE TRUST FUND

MISCELLANEOUS AGENCY FUNDS

ASSETS CASH & CASH EQUIVALENTS $ -- $ 175,007 $ 2,418 $ 20,585 $ 14,556INVESTMENTS -- 220,648 28,444 38,468 --RECEIVABLES -- 31,111 442 1,961 --OTHER ASSETS -- -- -- 482 -- TOTAL ASSETS $ -- $ 426,766 $ 31,304 $ 61,496 $ 14,556 LIABILITIES AMOUNTS HELD IN CUSTODY FOR OTHERS $ -- $ 357,094 $ 31,052 $ 61,452 $ 14,556OTHER LIABILITIES -- 69,672 252 44 -- TOTAL LIABILITIES $ -- $ 426,766 $ 31,304 $ 61,496 $ 14,556

NON-STATE ENTITIES OPEB

FUND PARISH

ROYALTY FUND

PAYROLL CLEARING

FUND TOTAL AGENCY

FUNDS ASSETS CASH & CASH EQUIVALENTS $ 12,648 $ 6,924 $ 82,648 $ 314,786 INVESTMENTS -- -- -- 287,560 RECEIVABLES 23,891 2,187 -- 59,592 OTHER ASSETS -- -- -- 482 TOTAL ASSETS $ 36,539 $ 9,111 $ 82,648 $ 662,420 LIABILITIES AMOUNTS HELD IN CUSTODY FOR OTHERS $ 34,492 $ 9,111 $ 82,648 $ 590,405 OTHER LIABILITIES 2,047 -- -- 72,015 TOTAL LIABILITIES $ 36,539 $ 9,111 $ 82,648 $ 662,420

State of Louisiana

- 165 -

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS FOR THE YEAR ENDED JUNE 30, 2018 (EXPRESSED IN THOUSANDS)

BALANCE JULY 1,

2017 ADDITIONS DELETIONS BALANCE JUNE 30,

2018 DEBT SERVICE RESERVE FUND ASSETS: CASH & CASH EQUIVALENTS $ 3,395 $ -- $ 3,395 $ -- TOTAL ASSETS $ 3,395 $ -- $ 3,395 $ -- LIABILITIES: AMOUNTS HELD IN CUSTODY FOR OTHERS $ 3,385 $ -- $ 3,385 $ --OTHER LIABILITIES 10 -- 10 -- TOTAL LIABILITIES $ 3,395 $ -- $ 3,395 $ -- ESCROW FUND ASSETS: CASH & CASH EQUIVALENTS $ 166,670 $ 1,415,168 $ 1,406,831 $ 175,007INVESTMENTS 211,086 9,562 -- 220,648RECEIVABLES 144,458 31,111 144,458 31,111 TOTAL ASSETS $ 522,214 $ 1,455,841 $ 1,551,289 $ 426,766 LIABILITIES: AMOUNTS HELD IN CUSTODY FOR OTHERS $ 305,597 $ 1,311,384 $ 1,259,887 $ 357,094OTHER LIABILITIES 216,617 69,672 216,617 69,672 TOTAL LIABILITIES $ 522,214 $ 1,381,056 $ 1,476,504 $ 426,766 FREE SCHOOL FUND ASSETS: CASH & CASH EQUIVALENTS $ 1,748 $ 1,111 $ 441 $ 2,418INVESTMENTS 29,333 -- 889 28,444RECEIVABLES 467 97 122 442 TOTAL ASSETS $ 31,548 $ 1,208 $ 1,452 $ 31,304 LIABILITIES: AMOUNTS HELD IN CUSTODY FOR OTHERS $ 31,207 $ 651 $ 806 $ 31,052OTHER LIABILITIES 341 252 341 252 TOTAL LIABILITIES $ 31,548 $ 903 $ 1,147 $ 31,304 (Continued)

State of Louisiana

- 166 -


BALANCE JULY 1,


2018 INSURANCE TRUST FUND ASSETS: CASH & CASH EQUIVALENTS $ 20,691 $ 2,573 $ 2,679 $ 20,585INVESTMENTS 39,658 12,745 13,935 38,468RECEIVABLES 1,767 885 691 1,961OTHER ASSETS 607 -- 125 482 TOTAL ASSETS $ 62,723 $ 16,203 $ 17,430 $ 61,496 LIABILITIES: AMOUNTS HELD IN CUSTODY FOR OTHERS $ 62,653 $ 16,158 $ 17,359 $ 61,452OTHER LIABILITIES 70 44 70 44 TOTAL LIABILITIES $ 62,723 $ 16,202 $ 17,429 $ 61,496 MISCELLANEOUS AGENCY FUNDS ASSETS: CASH & CASH EQUIVALENTS $ 13,763 $ 55,314 $ 54,521 $ 14,556 TOTAL ASSETS $ 13,763 $ 55,314 $ 54,521 $ 14,556 LIABILITIES: AMOUNTS HELD IN CUSTODY FOR OTHERS $ 13,763 $ 55,314 $ 54,521 $ 14,556 TOTAL LIABILITIES $ 13,763 $ 55,314 $ 54,521 $ 14,556 NON-STATE ENTITIES OPEB FUND ASSETS: CASH & CASH EQUIVALENTS $ -- $ 247,360 $ 234,712 $ 12,648RECEIVABLES 19,873 251,378 247,360 23,891 TOTAL ASSETS $ 19,873 $ 498,738 $ 482,072 $ 36,539 LIABILITIES: AMOUNTS HELD IN CUSTODY FOR OTHERS $ 17,484 $ 251,378 $ 234,370 $ 34,492OTHER LIABILITIES 2,389 234,370 234,712 2,047 TOTAL LIABILITIES $ 19,873 $ 485,748 $ 469,082 $ 36,539 (Continued)

State of Louisiana

- 167 -


BALANCE JULY 1,


2018 PARISH ROYALTY FUND ASSETS: CASH & CASH EQUIVALENTS $ 5,455 $ 19,237 $ 17,768 $ 6,924RECEIVABLES 2,248 3,311 3,372 2,187 TOTAL ASSETS $ 7,703 $ 22,548 $ 21,140 $ 9,111 LIABILITIES: AMOUNTS HELD IN CUSTODY FOR OTHERS $ 7,703 $ 19,176 $ 17,768 $ 9,111 TOTAL LIABILITIES $ 7,703 $ 19,176 $ 17,768 $ 9,111 PAYROLL CLEARING FUND ASSETS: CASH & CASH EQUIVALENTS $ 78,343 $ 2,722,785 $ 2,718,480 $ 82,648 TOTAL ASSETS $ 78,343 $ 2,722,785 $ 2,718,480 $ 82,648 LIABILITIES: AMOUNTS HELD IN CUSTODY FOR OTHERS $ 78,343 $ 2,722,785 $ 2,718,480 $ 82,648 TOTAL LIABILITIES $ 78,343 $ 2,722,785 $ 2,718,480 $ 82,648 TOTAL ALL AGENCY FUNDS ASSETS: CASH & CASH EQUIVALENTS $ 290,065 $ 4,463,548 $ 4,438,827 $ 314,786INVESTMENTS 280,077 22,307 14,824 287,560RECEIVABLES 168,813 286,782 396,003 59,592OTHER ASSETS 607 -- 125 482 TOTAL ASSETS $ 739,562 $ 4,772,637 $ 4,849,779 $ 662,420 LIABILITIES: AMOUNTS HELD IN CUSTODY FOR OTHERS $ 520,135 $ 4,376,846 $ 4,306,576 $ 590,405OTHER LIABILITIES 219,427 304,338 451,750 72,015 TOTAL LIABILITIES $ 739,562 $ 4,681,184 $ 4,758,326 $ 662,420 (Concluded)

State of Louisiana

- 168 -

COMBINING STATEMENT OF NET POSITION NONMAJOR COMPONENT UNITS JUNE 30, 2018 (EXPRESSED IN THOUSANDS)

ASCENSION ST. JAMES AIRPORT AND

TRANSPORTATION AUTHORITY

BOARDS & COMMISSIONS

FOUNDATION FOR EXCELLENCE IN

LOUISIANA PUBLIC BROADCASTING

GREATER BATON ROUGE PORT

COMMISSION **

GREATER NEW ORLEANS

EXPRESSWAY COMMISSION *


CASH & CASH EQUIVALENTS $ 308 $ 12,704 $ 1,794 $ 9,494 $ 11,280RESTRICTED CASH & CASH EQUIVALENTS 168 -- -- -- 50,774INVESTMENTS -- 16,191 33,225 11,365 912RESTRICTED INVESTMENTS -- -- -- 741 74,085RECEIVABLES (NET) 4 115 944 2,896 2,495LEASES RECEIVABLE (NET) -- -- -- -- --AMOUNTS DUE FROM PRIMARY GOVERNMENT 36 -- -- -- --DUE FROM FEDERAL GOVERNMENT -- -- -- -- --INVENTORIES 42 -- -- -- 857PREPAYMENTS -- -- -- 64 1,493NOTES RECEIVABLE -- -- -- -- --OTHER CURRENT ASSETS -- 4 165 51 --

TOTAL CURRENT ASSETS 558 29,014 36,128 24,611 141,896 NON-CURRENT ASSETS:

RESTRICTED ASSETS -- -- 4,531 -- --INVESTMENTS -- 10,279 -- -- --NOTES RECEIVABLE -- -- -- -- --CAPITAL ASSETS

LAND 1,883 352 -- 11,212 --BUILDING & IMPROVEMENTS (NET) 1,203 1,011 -- 36,604 3,754MACHINERY & EQUIPMENT (NET) 182 153 -- 1,931 3,133INFRASTRUCTURE (NET) 9,890 -- -- 16,996 119,450INTANGIBLE ASSETS (NET) -- -- -- -- --CONSTRUCTION IN PROGRESS 345 1,186 -- 10,936 --

OTHER NONCURRENT ASSETS -- -- -- -- --TOTAL NON-CURRENT ASSETS 13,503 12,981 4,531 77,679 126,337

TOTAL ASSETS 14,061 41,995 40,659 102,290 268,233


DEFERRED AMOUNTS ON DEBT REFUNDING -- -- -- -- --OPEB-RELATED DEFERRED OUTFLOWS OF RESOURCES -- 159 -- -- --PENSION-RELATED DEFERRED OUTFLOWS OF RESOURCES -- 1,380 -- 613 2,268

TOTAL DEFERRED OUTFLOWS OF RESOURCES -- 1,539 -- 613 2,268 LIABILITIES CURRENT LIABILITIES:

ACCOUNTS PAYABLE 65 250 315 1,218 3,504ACCRUED INTEREST 19 -- -- 25 --AMOUNTS DUE TO PRIMARY GOVERNMENT 2 -- 195 -- --DUE TO FEDERAL GOVERNMENT -- 309 -- -- --AMOUNTS HELD IN CUSTODY FOR OTHERS 8 -- -- -- --UNEARNED REVENUES 15 2,310 185 1,740 1,121OTHER CURRENT LIABILITIES -- 291 -- -- --CURRENT PORTION OF LONG-TERM LIABILITIES:

CONTRACTS PAYABLE -- -- -- 453 --COMPENSATED ABSENCES PAYABLE -- 42 -- -- --CAPITAL LEASE OBLIGATIONS -- -- -- -- --NOTES PAYABLE -- 22 -- -- --BONDS PAYABLE 15 -- -- 680 2,971ESTIMATED LIABILITY FOR CLAIMS -- -- -- -- --OTHER LONG-TERM LIABILITIES -- -- -- 48 --

TOTAL CURRENT LIABILITIES 124 3,224 695 4,164 7,596 NONCURRENT LIABILITIES:

NONCURRENT PORTION OF LONG-TERM LIABILITIES: COMPENSATED ABSENCES PAYABLE -- 91 -- -- 352CAPITAL LEASE OBLIGATIONS -- -- -- -- --NOTES PAYABLE -- 346 -- -- --BONDS PAYABLE 651 -- -- 721 136,749ESTIMATED LIABILITY FOR CLAIMS -- -- -- -- 1,434TOTAL OPEB LIABILITY -- 6,441 -- 2,949 207NET PENSION LIABILITY -- 9,944 -- 5,799 1,827OTHER LONG-TERM LIABILITIES -- -- -- -- --

UNEARNED REVENUE -- -- -- -- 1,245TOTAL NON-CURRENT LIABILITIES 651 16,822 -- 9,469 141,814

TOTAL LIABILITIES 775 20,046 695 13,633 149,410 DEFERRED INFLOWS OF RESOURCES

DEFERRED AMOUNTS ON DEBT REFUNDING -- -- -- -- --GRANTS RECEIVED PRIOR TO MEETING TIME REQUIREMENTS -- -- -- -- --OPEB-RELATED DEFERRED INFLOWS OF RESOURCES -- 386 -- -- --PENSION-RELATED DEFERRED INFLOWS OF RESOURCES -- 294 -- 141 320

TOTAL DEFERRED INFLOWS OF RESOURCES -- 680 -- 141 320

NET POSITION NET INVESTMENT IN CAPITAL ASSETS 12,837 2,334 -- 76,279 87,028RESTRICTED FOR:

CAPITAL PROJECTS -- -- -- -- 6,802DEBT SERVICE 149 -- -- 668 12,897OTHER PURPOSES -- -- -- -- --

UNRESTRICTED 300 20,474 39,964 12,182 14,044TOTAL NET POSITION $ 13,286 $ 22,808 $ 39,964 $ 89,129 $ 120,771

(Continued) * As of October 31, 2017. ** As of December 31, 2017.

State of Louisiana

- 169 -

HEALTH EDUCATION

AUTHORITY OF LOUISIANA

HUMAN SERVICES DISTRICTS

LOUISIANA CANCER

RESEARCH CENTER

LOUISIANA CITIZENS

PROPERTY INSURANCE

CORPORATION **

LOUISIANA ECONOMIC

DEVELOPMENT CORPORATION

LOUISIANA HOUSING

CORPORATION

LOUISIANA INTERNATIONAL

DEEP WATER GULF TRANSFER

TERMINAL AUTHORITY

LOUISIANA PUBLIC

FACILITIES AUTHORITY **

$ 135 $ 46,313 $ 16,576 $ 133,792 $ 12,867 $ 1,584 $ 227 $ 3,111 -- -- -- 44,799 -- -- -- -- 1,361 -- 12,243 3,689 -- 8,860 -- 4,958 -- -- -- -- -- -- -- -- -- 11,855 3,371 25,891 2,330 991 -- 209 -- -- 753 -- -- -- -- -- -- 5,226 93 -- -- -- -- -- -- -- -- -- -- 2,245 -- -- -- 261 -- -- -- -- -- -- -- 55 117 2,687 -- -- -- 12 -- -- -- -- 78 989 -- 3,497 -- -- -- -- 7,297 235 -- -- 1,496 63,710 33,153 210,858 22,572 14,904 227 11,787 -- -- -- 3,774 -- 254,943 -- 230,041 -- -- -- 81,607 20,930 -- -- 14,193 -- -- -- -- 282 -- -- 10,244 -- -- 672 -- -- 1,022 -- -- -- 10,527 87,036 -- -- 70,083 -- -- -- 981 4,100 300 -- 219 -- 27 -- -- -- -- -- -- -- -- -- -- -- 590 -- -- -- -- -- 41 -- -- -- -- -- -- -- -- -- 108 6,131 -- -- -- -- 11,549 91,808 86,379 27,343 326,267 -- 254,505 1,496 75,259 124,961 297,237 49,915 341,171 227 266,292 -- -- -- 13,213 -- -- -- -- -- 3,496 -- -- -- 144 -- -- 499 39,793 -- 202 -- 4,656 -- -- 499 43,289 -- 13,415 -- 4,800 -- -- 35 11,022 3,686 3,497 237 2,690 7 1,323 -- -- -- -- -- -- -- -- -- 10,744 -- -- -- -- -- -- -- -- -- -- -- 2,469 -- -- -- -- -- -- -- -- -- -- -- -- -- 38,184 2,609 -- -- -- -- -- 1 8,197 -- -- -- 772 -- -- -- -- -- -- -- -- -- 3,413 36 102 -- 73 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 2,325 -- -- -- -- -- 55,373 -- -- -- -- -- -- -- 40,487 -- -- -- -- -- 445 -- -- -- -- -- -- 35 25,624 3,723 145,840 2,846 7,557 7 2,095 20 3,087 50 -- -- 1,105 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 461,155 -- 1,045 -- 190,892 -- -- -- -- 1,203 -- -- -- 220 142,475 -- 1,974 -- 11,222 -- -- 630 239,002 -- -- -- 24,138 -- -- -- -- -- 3,774 -- 2,178 -- -- -- -- -- -- -- -- -- --

870 384,564 50 466,903 1,203 39,688 -- 190,892 905 410,188 3,773 612,743 4,049 47,245 7 192,987 -- -- -- -- -- 286 -- -- -- -- -- -- -- 4,010 -- -- -- 8,542 -- -- -- 754 -- -- 69 10,611 -- 82 -- 1,802 -- -- 69 19,153 -- 82 -- 6,852 -- -- -- 11,549 91,808 890 -- 71,324 -- 27 -- -- -- -- -- -- -- -- -- -- -- 134,952 -- -- -- 37,303 -- -- 24,769 -- 5,791 249,109 -- -- 1,021 (322,342) 4,611 (438,015) 40,075 (28,559) 220 35,975

$ 1,021 $ (310,793) $ 121,188 $ (302,173) $ 45,866 $ 291,874 $ 220 $ 73,305

State of Louisiana

- 170 -

COMBINING STATEMENT OF NET POSITION NONMAJOR COMPONENT UNITS JUNE 30, 2018 (EXPRESSED IN THOUSANDS)

LOUISIANA UTILITIES

RESTORATION CORPORATION

OTHER LEVEE

DISTRICTS ROAD HOME

CORPORATION SABINE RIVER

AUTHORITY

SOUTHEAST LOUISIANA FLOOD

PROTECTION AUTHORITY - EAST & WEST

TOTAL NONMAJOR

COMPONENT UNITS


CASH & CASH EQUIVALENTS $ -- $ 46,926 $ 273 $ 18,900 $ 44,608 $ 360,892RESTRICTED CASH & CASH EQUIVALENTS 114,563 10 -- 992 -- 211,306INVESTMENTS -- 87,744 -- -- 118,516 299,064RESTRICTED INVESTMENTS -- 1,000 -- -- 9,247 85,073RECEIVABLES (NET) 14,014 12,512 795 1,115 514 80,051LEASES RECEIVABLE (NET) -- -- -- -- -- 753AMOUNTS DUE FROM PRIMARY GOVERNMENT -- 1,031 -- 313 3,124 9,823DUE FROM FEDERAL GOVERNMENT -- -- -- -- 2,897 5,142INVENTORIES -- 40 -- -- 320 1,520PREPAYMENTS -- 472 60 -- -- 4,960NOTES RECEIVABLE -- -- -- -- -- 4,564OTHER CURRENT ASSETS -- 136 37 22 668 8,615

TOTAL CURRENT ASSETS 128,577 149,871 1,165 21,342 179,894 1,071,763 NON-CURRENT ASSETS:

RESTRICTED ASSETS -- 363 -- 480 -- 494,132INVESTMENTS -- 17,076 -- 5,959 -- 150,044NOTES RECEIVABLE -- 2 -- -- -- 10,528CAPITAL ASSETS

LAND -- 18,318 722 1,435 42,734 78,350BUILDING & IMPROVEMENTS (NET) -- 7,994 473 20,573 95,220 334,478MACHINERY & EQUIPMENT (NET) -- 9,952 5 1,108 6,590 28,681INFRASTRUCTURE (NET) -- 88,957 -- 22,670 828,655 1,086,618INTANGIBLE ASSETS (NET) -- 726 -- 4,848 -- 6,164CONSTRUCTION IN PROGRESS -- 172,482 -- 11,850 6,619,241 6,816,081

OTHER NONCURRENT ASSETS -- 12 40 50 75 6,416TOTAL NON-CURRENT ASSETS -- 315,882 1,240 68,973 7,592,515 9,011,492

TOTAL ASSETS 128,577 465,753 2,405 90,315 7,772,409 10,083,255


DEFERRED AMOUNTS ON DEBT REFUNDING -- -- -- -- -- 13,213OPEB-RELATED DEFERRED OUTFLOWS OF RESOURCES -- 3,160 -- 141 591 7,691PENSION-RELATED DEFERRED OUTFLOWS OF RESOURCES -- 6,031 -- 1,059 7,702 64,203

TOTAL DEFERRED OUTFLOWS OF RESOURCES -- 9,191 -- 1,200 8,293 85,107 LIABILITIES CURRENT LIABILITIES:

ACCOUNTS PAYABLE 506 4,171 687 1,099 3,147 37,459ACCRUED INTEREST 9,149 11 -- 56 -- 9,260AMOUNTS DUE TO PRIMARY GOVERNMENT -- 2 -- -- 471 11,414DUE TO FEDERAL GOVERNMENT -- -- -- -- 4,561 7,339AMOUNTS HELD IN CUSTODY FOR OTHERS -- -- -- -- -- 8UNEARNED REVENUES -- 134 -- 10 -- 46,308OTHER CURRENT LIABILITIES -- 76 -- -- 1,108 10,445CURRENT PORTION OF LONG-TERM LIABILITIES:

CONTRACTS PAYABLE -- 1,430 -- -- 3,469 5,352COMPENSATED ABSENCES PAYABLE -- 61 -- -- 81 3,808CAPITAL LEASE OBLIGATIONS -- 95 -- -- -- 95NOTES PAYABLE -- -- -- -- -- 2,347BONDS PAYABLE 146,055 715 -- 4,362 307 210,478ESTIMATED LIABILITY FOR CLAIMS -- -- -- -- -- 40,487OTHER LONG-TERM LIABILITIES -- -- 14 -- 64 571

TOTAL CURRENT LIABILITIES 155,710 6,695 701 5,527 13,208 385,371 NONCURRENT LIABILITIES:

NONCURRENT PORTION OF LONG-TERM LIABILITIES: COMPENSATED ABSENCES PAYABLE -- 1,249 53 -- 1,607 7,614CAPITAL LEASE OBLIGATIONS -- 126 -- -- -- 126NOTES PAYABLE -- -- -- -- -- 346BONDS PAYABLE 444,628 17,077 -- -- 6,598 1,259,516ESTIMATED LIABILITY FOR CLAIMS -- -- -- -- -- 2,637TOTAL OPEB LIABILITY -- 42,274 -- 6,134 23,495 237,391NET PENSION LIABILITY -- 33,320 -- 7,722 45,301 367,683OTHER LONG-TERM LIABILITIES -- -- -- -- -- 5,952

UNEARNED REVENUE -- -- -- -- 607 1,852TOTAL NON-CURRENT LIABILITIES 444,628 94,046 53 13,856 77,608 1,883,117

TOTAL LIABILITIES 600,338 100,741 754 19,383 90,816 2,268,488 DEFERRED INFLOWS OF RESOURCES

DEFERRED AMOUNTS ON DEBT REFUNDING -- -- -- -- -- 286GRANTS RECEIVED PRIOR TO MEETING TIME REQUIREMENTS -- -- -- -- -- 4,010OPEB-RELATED DEFERRED INFLOWS OF RESOURCES -- 1,996 -- 394 1,485 13,557PENSION-RELATED DEFERRED INFLOWS OF RESOURCES -- 3,197 -- 576 908 18,000

TOTAL DEFERRED INFLOWS OF RESOURCES -- 5,193 -- 970 2,393 35,853

NET POSITION NET INVESTMENT IN CAPITAL ASSETS -- 291,879 1,201 58,122 7,585,535 8,290,813RESTRICTED FOR:

CAPITAL PROJECTS -- 463 -- 935 531 8,731DEBT SERVICE -- 1,988 -- 537 -- 188,494OTHER PURPOSES -- 589 -- -- 89,580 369,838

UNRESTRICTED (471,761) 74,091 450 11,568 11,847 (993,855)TOTAL NET POSITION $ (471,761) $ 369,010 $ 1,651 $ 71,162 $ 7,687,493 7,864,021

(Concluded) * As of October 31, 2017. ** As of December 31, 2017.

State of Louisiana

- 171 -

COMBINING STATEMENT OF ACTIVITIES

NONMAJOR COMPONENT UNITS

FOR THE YEAR ENDED JUNE 30, 2018 (EXPRESSED IN THOUSAND) PROGRAM REVENUES

EXPENSES

CHARGES FOR

SERVICES

OPERATING GRANTS &

CONTRIBUTIONS

CAPITAL GRANTS &

CONTRIBUTIONS NET (EXPENSE)

REVENUE NONMAJOR COMPONENT UNITS: ASCENSION ST. JAMES AIRPORT AND TRANSPORTATION AUTHORITY $ 1,176 $ 691 $ 8 $ 251 $ (226)BOARDS & COMMISSIONS 8,986 9,599 -- -- 613FOUNDATION FOR EXCELLENCE IN LOUISIANA PUBLIC BROADCASTING 7,001 1,268 4,813 -- (920)GREATER BATON ROUGE PORT COMMISSION ** 10,072 13,423 -- 736 4,087GREATER NEW ORLEANS EXPRESSWAY COMMISSION * 25,021 20,533 -- 2,024 (2,464)HEALTH EDUCATION AUTHORITY OF LOUISIANA 486 255 -- -- (231)HUMAN SERVICES DISTRICTS 176,024 55,530 12,260 -- (108,234)LOUISIANA CANCER RESEARCH CENTER 18,189 4,118 578 1,907 (11,586)LOUISIANA CITIZENS PROPERTY INSURANCE CORPORATION ** 61,430 56,439 -- -- (4,991)LOUISIANA ECONOMIC DEVELOPMENT CORPORATION 17,028 382 -- -- (16,646)LOUISIANA HOUSING CORPORATION 195,540 13,280 186,000 -- 3,740LOUISIANA INTERNATIONAL DEEP WATER GULF TRANSFER TERMINAL AUTHORITY 208 240 -- -- 32LOUISIANA PUBLIC FACILITIES AUTHORITY ** 8,391 7,841 -- -- (550)LOUISIANA UTILITIES RESTORATION CORPORATION 27,540 242,832 -- -- 215,292OTHER LEVEE DISTRICTS 69,586 298 5,084 2,911 (61,293)ROAD HOME CORPORATION 2,496 -- 1,634 492 (370)SABINE RIVER AUTHORITY 11,503 14,033 -- -- 2,530SOUTHEAST LOUISIANA FLOOD PROTECTION AUTHORITY - EAST & WEST 74,316 6,773 -- 2,375 (65,168) TOTAL NONMAJOR COMPONENT UNITS $ 714,993 $ 447,535 $ 210,377 $ 10,696 $ (46,385)

GENERAL REVENUES

PAYMENTS FROM PRIMARY GOVERNMENT

OTHER GENERAL

REVENUES CHANGE IN NET

POSITION

NET POSITION BEGINNING OF

YEAR AS RESTATED

NET POSITION END OF YEAR

NONMAJOR COMPONENT UNITS: ASCENSION ST. JAMES AIRPORT AND TRANSPORTATION AUTHORITY $ -- $ 8 $ (218) $ 13,504 $ 13,286BOARDS & COMMISSIONS 319 3,185 4,117 18,691 22,808FOUNDATION FOR EXCELLENCE IN LOUISIANA PUBLIC BROADCASTING -- 3,082 2,162 37,802 39,964GREATER BATON ROUGE PORT COMMISSION ** -- 38 4,125 85,004 89,129GREATER NEW ORLEANS EXPRESSWAY COMMISSION * 6,656 483 4,675 116,096 120,771HEALTH EDUCATION AUTHORITY OF LOUISIANA -- 2 (229) 1,250 1,021HUMAN SERVICES DISTRICTS 120,639 2,451 14,856 (325,649) (310,793)LOUISIANA CANCER RESEARCH CENTER 11,949 -- 363 120,825 121,188LOUISIANA CITIZENS PROPERTY INSURANCE CORPORATION ** -- 67,965 62,974 (365,147) (302,173)LOUISIANA ECONOMIC DEVELOPMENT CORPORATION 12,503 292 (3,851) 49,717 45,866LOUISIANA HOUSING CORPORATION -- 6,793 10,533 281,341 291,874LOUISIANA INTERNATIONAL DEEP WATER GULF TRANSFER TERMINAL AUTHORITY -- -- 32 188 220LOUISIANA PUBLIC FACILITIES AUTHORITY ** -- 250 (300) 73,605 73,305LOUISIANA UTILITIES RESTORATION CORPORATION -- 1,086 216,378 (688,139) (471,761)OTHER LEVEE DISTRICTS 4,753 51,878 (4,662) 373,672 369,010ROAD HOME CORPORATION -- 38 (332) 1,983 1,651SABINE RIVER AUTHORITY -- 152 2,682 68,480 71,162SOUTHEAST LOUISIANA FLOOD PROTECTION AUTHORITY - EAST & WEST 473 813,547 748,852 6,938,641 7,687,493 TOTAL NONMAJOR COMPONENT UNITS $ 157,292 $ 951,250 $ 1,062,157 $ 6,801,864 $ 7,864,021 * As of October 31, 2017. ** As of December 31, 2017.

- 172 -

I I I . STATISTICAL SECTION


State of Louisiana

- 173 -

Statistical Section Index

This part of the Louisiana comprehensive annual financial reportpresents detailed information as a context for understanding what theinformation in the financial statements, note disclosures, and requiredsupplementary information says about Louisiana's overall financial health.

Contents Page

Financial Trends 174These schedules contain trend information to help the reader understand how Louisiana's financial performance and well-beinghave changed over time.

Revenue Capacity 184These schedules contain information to help the reader assess Louisiana's most significant state revenue source, income tax.

Debt Capacity 190These schedules present information to help the reader assess the affordability of Louisiana's current levels of outstanding debtand Louisiana's ability to issue additional debt in the future.

Demographic and Economic Information 196These schedules offer demographic and economic indicatorsto help the reader understand the environment within whichLouisiana's financial activities take place.

Operating Information 198These schedules contain service and infrastructure data to help the reader understand how the information in Louisiana's financialreport relates to the services Louisiana provides and the activitiesit performs.

State of Louisiana

- 174 -

NET POSITION BY COMPONENTLAST TEN FISCAL YEARS

(ACCRUAL BASIS OF ACCOUNTING)


2018 2017 2016 2015

GOVERNMENTAL ACTIVITIES

NET INVESTMENT IN CAPITAL ASSETS * $ 11,730,196 $ 11,641,540 $ 11,664,584 $ 11,401,308RESTRICTED 4,556,099 4,571,712 4,656,885 4,820,821UNRESTRICTED (16,052,435) (11,949,852) (12,343,424) (12,443,429)

TOTAL GOVERNMENTAL ACTIVITIES NET POSITION $ 233,860 $ 4,263,400 $ 3,978,045 $ 3,778,700

BUSINESS-TYPE ACTIVITIES

NET INVESTMENT IN CAPITAL ASSETS * $ 446,322 $ 446,609 $ 429,685 $ 389,158RESTRICTED 1,220,926 1,127,101 1,109,109 1,122,120UNRESTRICTED 339,229 506,154 542,336 535,413

TOTAL BUSINESS-TYPE ACTIVITIES NET POSITION $ 2,006,477 $ 2,079,864 $ 2,081,130 $ 2,046,691

PRIMARY GOVERNMENT

NET INVESTMENT IN CAPITAL ASSETS * $ 12,176,518 $ 12,088,149 $ 12,094,269 $ 11,790,466RESTRICTED 5,777,025 5,698,813 5,765,994 5,942,941UNRESTRICTED (15,713,206) (11,443,698) (11,801,088) (11,908,016)

TOTAL PRIMARY GOVERNMENT NET POSITION $ 2,240,337 $ 6,343,264 $ 6,059,175 $ 5,825,391

* GASB 63 replaced the following terminology: "Net assets" was replaced with "net position" and "invested in capital assets, net of related debt"was replaced with "net investment in capital assets."

Source: Office of Statewide Reporting and Accounting Policy

State of Louisiana

- 175 -

2014 2013 2012 2011 2010 2009

$ 11,230,136 $ 11,573,027 $ 11,466,833 $ 11,862,399 $ 14,737,911 $ 14,091,3584,592,434 4,721,228 4,580,471 5,008,705 5,096,314 5,489,526

(5,460,846) (5,034,905) (3,914,614) (3,341,575) (2,318,148) (1,059,178)

$ 10,361,724 $ 11,259,350 $ 12,132,690 $ 13,529,529 $ 17,516,077 $ 18,521,706

$ 354,442 $ 338,894 $ 200,294 $ 218,826 $ 170,960 $ 119,0331,038,066 991,425 839,363 906,600 1,048,285 1,417,455

943,383 966,905 1,042,012 896,531 772,984 964,436

$ 2,335,891 $ 2,297,224 $ 2,081,669 $ 2,021,957 $ 1,992,229 $ 2,500,924

$ 11,584,578 $ 11,911,921 $ 11,667,127 $ 12,081,225 $ 14,908,871 $ 14,210,3915,630,500 5,712,653 5,419,834 5,915,305 6,144,599 6,906,981

(4,517,463) (4,068,000) (2,872,602) (2,445,044) (1,545,164) (94,742)

$ 12,697,615 $ 13,556,574 $ 14,214,359 $ 15,551,486 $ 19,508,306 $ 21,022,630

State of Louisiana

- 176 -

CHANGES IN NET POSITIONLAST TEN FISCAL YEARS



2018 2017 2016 2015

EXPENSESGOVERNMENTAL ACTIVITIES:

GENERAL GOVERNMENT $ 2,887,652 $ 2,527,768 $ 2,625,646 $ 2,832,201CULTURE, RECREATION, AND TOURISM 97,685 103,386 112,186 117,876TRANSPORTATION AND DEVELOPMENT 1,377,898 1,560,415 1,446,159 1,415,006PUBLIC SAFETY 949,390 1,872,279 886,259 1,636,934HEALTH AND WELFARE 13,975,446 14,044,785 11,287,812 11,065,490CORRECTIONS 702,948 713,713 670,100 697,116YOUTH SERVICES 75,263 91,636 78,435 85,475CONSERVATION AND ENVIRONMENT 554,590 550,652 571,969 541,139EDUCATION 6,308,850 6,147,844 6,184,322 6,246,331AGRICULTURE & FORESTRY 93,118 89,613 83,850 70,710ECONOMIC DEVELOPMENT 231,981 259,836 256,067 311,360MILITARY & VETERANS AFFAIRS 170,224 183,731 171,718 161,366WORKFORCE SUPPORT & TRAINING 247,754 251,137 257,060 240,505OTHER -- -- -- --INTERGOVERNMENTAL -- -- -- --INTEREST ON LONG-TERM DEBT 294,885 289,139 258,062 305,799

TOTAL GOVERNMENTAL ACTIVITIES EXPENSES 27,967,684 28,685,934 24,889,645 25,727,308

BUSINESS-TYPE ACTIVITIES:HIGHER EDUCATION 478,936 488,498 478,874 484,420LENDING & FINANCING ACTIVITIES 38,243 24,749 29,311 34,838LOTTERY -- -- -- --PROPERTY ASSISTANCE 8,427 9,892 7,866 6,998PRISON ENTERPRISES 28,911 29,230 30,489 31,307REGULATION & OVERSIGHT 47,182 48,926 45,699 42,643UNEMPLOYMENT INSURANCE 187,023 242,249 251,175 204,083

TOTAL BUSINESS-TYPE ACTIVITIES EXPENSES 788,722 843,544 843,414 804,289TOTAL PRIMARY GOVERNMENT EXPENSES $ 28,756,406 $ 29,529,478 $ 25,733,059 $ 26,531,597

PROGRAM REVENUESGOVERNMENTAL ACTIVITIES:

CHARGES FOR SERVICESGENERAL GOVERNMENT $ 1,216,509 $ 1,305,131 $ 1,399,925 $ 1,282,105CULTURE, RECREATION, AND TOURISM 16,612 15,021 14,602 15,212TRANSPORTATION AND DEVELOPMENT 174,505 181,040 189,311 178,548PUBLIC SAFETY 344,842 321,562 351,318 318,140HEALTH AND WELFARE 288,857 291,734 171,475 237,623CORRECTIONS 41,150 39,170 30,491 42,818YOUTH SERVICES 1,008 1,215 1,612 230CONSERVATION AND ENVIRONMENT 169,362 168,717 159,403 158,759EDUCATION 17,218 6,009 11,175 66,501AGRICULTURE & FORESTRY 21,652 20,153 19,750 20,928ECONOMIC DEVELOPMENT 4,259 5,513 17,425 13,658MILITARY & VETERANS AFFAIRS 15,806 16,404 16,189 16,572WORKFORCE SUPPORT & TRAINING 76,684 78,238 68,723 50,984INTERGOVERNMENTAL -- -- -- --

OPERATING GRANTS AND CONTRIBUTIONS 13,859,304 14,464,231 10,614,966 11,323,586CAPITAL GRANTS AND CONTRIBUTIONS 587,843 607,380 686,918 572,203

TOTAL GOVERNMENTAL ACTIVITIES PROGRAM REVENUES 16,835,611 17,521,518 13,753,283 14,297,867

* GASB 63 replaced Net Assets with Net Position.


(Continued)

State of Louisiana

- 177 -

2014 2013 2012 2011 2010 2009

$ 4,675,822 $ 4,607,483 $ 5,308,576 $ 6,497,216 $ 5,896,826 $ 6,972,40398,784 99,582 92,741 110,078 86,845 122,928

1,542,225 1,312,998 1,500,182 1,370,238 1,111,846 1,286,404347,473 336,143 326,627 337,149 349,369 371,326

10,208,763 10,071,069 9,769,203 9,335,925 10,248,151 9,671,816639,414 657,028 633,544 671,436 686,957 727,095108,772 106,779 116,791 134,274 152,562 170,678354,087 343,487 364,234 372,703 595,690 499,648

6,382,964 6,705,462 6,614,109 6,602,774 6,599,451 7,136,960-- -- -- -- -- ---- -- -- -- -- ---- -- -- -- -- ---- -- -- -- -- --

26,599 29,369 25,407 49,174 45,821 66,424586,420 515,763 505,680 430,763 398,377 485,875305,101 305,746 332,586 284,395 299,326 304,763

25,276,424 25,090,909 25,589,680 26,196,125 26,471,221 27,816,320

491,101 492,782 -- -- -- --41,506 32,993 26,544 39,310 21,548 1,019

-- -- -- -- 241,520 245,7236,720 7,617 7,661 10,239 11,349 10,563

29,222 29,282 28,224 28,395 27,597 32,59144,755 43,125 45,074 171,720 203,163 45,270

218,744 339,852 537,217 761,747 985,779 455,910832,048 945,651 644,720 1,011,411 1,490,956 791,076

$ 26,108,472 $ 26,036,560 $ 26,234,400 $ 27,207,536 $ 27,962,177 $ 28,607,396

$ 2,044,842 $ 2,178,896 $ 1,579,216 $ 1,906,708 $ 1,962,589 $ 2,029,90011,678 11,576 11,246 10,932 17,281 8,98434,254 63,437 122,485 88,817 70,665 230,874

277,384 310,738 323,089 279,280 280,500 303,813440,330 276,815 274,054 208,998 295,799 215,112

40,809 43,518 40,780 39,958 38,520 39,018438 793 2,789 1,490 -- 7,827

740,512 812,599 757,891 966,275 688,756 905,15760,397 37,810 38,915 5,518 60,329 41,544

-- -- -- -- -- ---- -- -- -- -- ---- -- -- -- -- ---- -- -- -- -- --

1,812 1,678 1,471 1,733 1,425 1,24410,475,760 10,308,201 11,707,327 11,390,940 11,138,352 11,068,209

637,078 1,049,293 1,076,896 2,403,996 2,526,649 3,010,69314,765,294 15,095,354 15,936,159 17,304,645 17,080,865 17,862,375

State of Louisiana

- 178 -

CHANGES IN NET POSITIONLAST TEN FISCAL YEARS



2018 2017 2016 2015

BUSINESS-TYPE ACTIVITIES:CHARGES FOR SERVICES

HIGHER EDUCATION 140,290 150,683 144,913 122,637LENDING & FINANCING ACTIVITIES 24,358 18,521 17,169 17,869LOTTERY -- -- -- --PROPERTY ASSISTANCE 8,618 7,247 7,579 7,831PRISON ENTERPRISES 27,900 28,098 28,766 32,590REGULATION & OVERSIGHT 48,398 48,703 48,580 49,221UNEMPLOYMENT INSURANCE 251,285 234,254 236,139 257,726

OPERATING GRANTS AND CONTRIBUTIONS 190,902 168,135 183,245 216,051CAPITAL GRANTS AND CONTRIBUTIONS 47,847 56,539 67,147 78,919

TOTAL BUSINESS-TYPE ACTIVITIES PROGRAM REVENUES 739,598 712,180 733,538 782,844TOTAL PRIMARY GOVERNMENT PROGRAM REVENUES $ 17,575,209 $ 18,233,698 $ 14,486,821 $ 15,080,711

NET (EXPENSE) REVENUEGOVERNMENTAL ACTIVITIES $ (11,132,073) $ (11,164,416) $ (11,136,362) $ (11,429,441)BUSINESS-TYPE ACTIVITIES (49,124) (131,364) (109,876) (21,445)

TOTAL PRIMARY GOVERNMENT NET (EXPENSE) REVENUE $ (11,181,197) $ (11,295,780) $ (11,246,238) $ (11,450,886)

GENERAL REVENUES AND OTHER CHANGES IN NET POSITIONGOVERNMENTAL ACTIVITIES:

CORPORATE INCOME TAXES $ 348,577 $ 313,977 $ 309,499 $ 226,162INDIVIDUAL INCOME TAXES 3,439,082 2,873,345 3,020,992 2,856,468SALES & USE TAXES 4,342,563 4,335,828 3,294,191 3,129,686SEVERANCE TAXES 460,998 384,866 434,449 710,071TOBACCO TAXES 296,860 314,307 253,015 153,952FRANCHISE TAXES 119,403 97,124 77,185 97,831GAS & FUELS TAXES, restricted for transportation 605,962 639,493 626,618 609,805TOBACCO SETTLEMENT, restricted for education, health and welfare -- -- -- --INSURANCE PREMIUM TAXES 893,076 888,386 528,999 454,795ALCOHOL TAXES 76,064 77,468 63,520 57,613OCCUPANCY TAXES 66,329 60,613 58,085 59,150OTHER TAXES 68,523 56,167 52,022 63,187UNCLAIMED PROPERTY 49,979 59,637 50,033 32,614GAMING 887,941 864,754 858,492 892,336USE OF MONEY & PROPERTY 424,388 536,130 669,883 560,646MISCELLANEOUS -- -- -- --OTHER -- -- -- --ADDITIONS TO PERMANENT ENDOWMENTS -- -- -- --EXTRAORDINARY ITEM -- -- 1,000,000 --TRANSFERS (131,586) (124,701) (153,459) (148,466)

TOTAL GOVERNMENTAL ACTIVITIES 11,948,159 11,377,394 11,143,524 9,755,850

BUSINESS-TYPE ACTIVITIES:USE OF MONEY & PROPERTY (663) 595 949 1,188OTHER -- -- -- --TRANSFERS 131,586 124,701 153,459 148,466

TOTAL BUSINESS-TYPE ACTIVITIES 130,923 125,296 154,408 149,654TOTAL PRIMARY GOVERNMENT $ 12,079,082 $ 11,502,690 $ 11,297,932 $ 9,905,504

CHANGE IN NET POSITION *GOVERNMENTAL ACTIVITIES $ 816,086 $ 212,978 $ 7,162 $ (1,673,591)BUSINESS-TYPE ACTIVITIES 81,799 (6,068) 44,532 128,209

TOTAL PRIMARY GOVERNMENT $ 897,885 $ 206,910 $ 51,694 $ (1,545,382)

* GASB 63 replaced Net Assets with Net Position.

(Concluded)

State of Louisiana

- 179 -

2014 2013 2012 2011 2010 2009

113,895 107,259 -- -- -- --19,043 16,770 16,714 18,086 14,553 14,478

-- -- -- -- 372,694 378,5127,547 8,206 8,101 10,692 11,564 10,834

28,105 29,186 27,872 27,203 25,620 32,80244,157 43,467 42,329 229,344 224,291 38,396

262,738 284,229 266,907 281,951 245,023 227,26096,002 162,789 212,490 376,724 412,463 99,33961,802 82,395 49,127 107,519 68,045 86,934

633,289 734,301 623,540 1,051,519 1,374,253 888,555$ 15,398,583 $ 15,829,655 $ 16,559,699 $ 18,356,164 $ 18,455,118 $ 18,750,930

$ (10,511,130) $ (9,995,555) $ (9,653,521) $ (8,891,480) $ (9,390,356) $ (9,953,945)(198,759) (211,350) (21,180) 40,108 (116,703) 97,479

$ (10,709,889) $ (10,206,905) $ (9,674,701) $ (8,851,372) $ (9,507,059) $ (9,856,466)

$ 293,641 $ 276,031 $ 402,538 $ 232,010 $ 196,241 $ 663,6272,744,460 2,626,994 2,473,473 2,433,794 2,294,903 2,966,9202,969,835 2,858,889 2,860,313 2,821,598 2,560,775 3,016,254

837,130 840,966 850,685 748,355 776,464 876,579129,338 123,497 133,194 142,064 135,927 105,469160,178 83,904 83,595 65,577 138,124 212,703613,917 619,379 596,052 639,452 624,554 599,192123,828 226,328 146,620 140,978 142,279 71,966428,815 406,530 346,217 356,089 340,922 305,667

56,968 56,878 56,811 56,001 55,320 56,88156,682 51,985 48,342 47,093 43,380 42,584

241,807 210,486 191,109 121,230 80,216 144,525-- -- -- -- -- --

846,045 835,470 828,010 823,418 668,235 715,44317,429 (23,149) (80,613) (4,208) (9,301) (12,169)

-- 3,303 3,548 3,123 338 330302 10,838 7,032 7,950 6,873 134,502

66,205 -- -- -- -- ---- -- -- -- -- (2,406)

(122,171) (115,210) 77,050 1,609 141,615 142,0669,464,409 9,093,119 9,023,976 8,636,133 8,196,865 10,040,133

-- -- -- -- -- --118,928 153,590 3,739 14,483 21,732 7,450122,171 115,210 (77,050) (1,609) (141,615) (142,066)241,099 268,800 (73,311) 12,874 (119,883) (134,616)

$ 9,705,508 $ 9,361,919 $ 8,950,665 $ 8,649,007 $ 8,076,982 $ 9,905,517

$ (1,046,721) $ (902,436) $ (629,545) $ (255,347) $ (1,193,491) $ 86,18842,340 57,450 (94,491) 52,982 (236,586) (37,137)

$ (1,004,381) $ (844,986) $ (724,036) $ (202,365) $ (1,430,077) $ 49,051

State of Louisiana

- 180 -

FUND BALANCES, GOVERNMENTAL FUNDSLAST TEN FISCAL YEARS

(MODIFIED ACCRUAL BASIS OF ACCOUNTING)


2018 2017 2016 2015

GENERAL FUND (per GASB 54) *NONSPENDABLE $ 103,596 $ 97,936 $ 92,904 $ 100,429RESTRICTED 949,804 995,329 1,228,992 1,448,205COMMITTED 1,152,626 966,361 965,705 924,421ASSIGNED 84,121 -- -- 282,248UNASSIGNED - (565,349) (1,002,223) (658,759)

GENERAL FUND (prior GASB 54) **RESERVED -- -- -- --UNRESERVED -- -- -- --

TOTAL GENERAL FUND $ 2,290,147 $ 1,494,277 $ 1,285,378 $ 2,096,544

ALL OTHER GOVERNMENTAL FUNDS (per GASB 54) *NONSPENDABLE $ 2,690,586 $ 2,663,784 $ 2,634,282 $ 2,596,312RESTRICTED 814,358 811,329 743,429 765,601COMMITTED 198,073 194,530 113,443 341,726UNASSIGNED (4,928) (4,508) (2,750) --

ALL OTHER GOVERNMENTAL FUNDS (prior GASB 54) **RESERVED -- -- -- --UNRESERVED, REPORTED IN:

SPECIAL REVENUE FUNDS -- -- -- --DEBT SERVICE FUNDS -- -- -- --CAPITAL PROJECTS FUNDS -- -- -- --PERMANENT FUNDS -- -- -- --

TOTAL ALL OTHER GOVERNMENTAL FUNDS $ 3,698,089 $ 3,665,135 $ 3,488,404 $ 3,703,639

* With the implementation of GASB 54 in FY 2011, fund balances are reclassifed as Nonspendable, Restricted,Committed, Assigned, and Unassigned.

** Prior to FY 2011 and GASB 54, fund balances were classified as Reserved or Unreserved according to GASB 34.


State of Louisiana

- 181 -

2014 2013 2012 2011 2010 2009

$ 111,497 $ 73,780 $ 70,707 $ 76,273 $ -- $ --1,479,562 1,270,682 1,405,987 1,439,257 -- --1,320,903 1,608,089 1,809,517 2,073,954 -- --

190,400 224,672 223,490 234,052 -- --62,574 36,529 127,508 111,769 -- --

-- -- -- -- 1,013,749 856,166-- -- -- -- (49,333) 802,611

$ 3,164,936 $ 3,213,752 $ 3,637,209 $ 3,935,305 $ 964,416 $ 1,658,777

$ 2,577,930 $ 2,511,725 $ 2,466,207 $ 2,479,800 $ -- $ --820,023 804,512 932,411 1,056,686 -- --444,094 342,924 508,847 697,635 -- --

-- -- -- -- -- --

-- -- -- -- 3,048,357 3,136,568

-- -- -- -- 3,586,804 4,447,259-- -- -- -- 614 1,534-- -- -- -- 243 636-- -- -- -- 1,431,269 1,369,402

$ 3,842,047 $ 3,659,161 $ 3,907,465 $ 4,234,121 $ 8,067,287 $ 8,955,399

State of Louisiana

- 182 -

CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDSLAST TEN FISCAL YEARS

(MODIFIED ACCRUAL BASIS OF ACCOUNTING)


2018 2017 2016 2015

REVENUESINTERGOVERNMENTAL REVENUES $ 14,138,100 $ 14,858,460 $ 11,043,313 $ 11,435,410TAXES 10,698,899 10,000,554 8,648,395 8,467,558TOBACCO SETTLEMENT 155,071 141,267 137,487 139,124GAMING 887,941 864,754 858,492 892,336USE OF MONEY AND PROPERTY 442,439 520,222 655,115 593,682LICENSES, PERMITS, AND FEES 1,348,734 1,299,999 1,275,285 1,055,348SALES OF COMMODITIES AND SERVICES 873,355 961,480 1,008,850 996,066UNCLAIMED PROPERTY 49,979 59,637 50,033 32,614OTHER SETTLEMENTS 290 5,323 19,128 245,674GIFTS, DONATIONS, AND CONTRIBUTIONS 146,983 117,427 110,160 67,787OTHER 108,015 106,011 143,181 253,766

TOTAL REVENUES 28,849,806 28,935,134 23,949,439 24,179,365

EXPENDITURESGENERAL GOVERNMENT 2,329,105 1,891,306 2,026,766 2,191,384CULTURE, RECREATION, AND TOURISM 67,123 67,201 70,084 75,751TRANSPORTATION AND DEVELOPMENT 412,303 433,428 422,252 432,151PUBLIC SAFETY 652,535 898,418 879,925 832,434HEALTH AND WELFARE 13,785,451 13,431,804 10,934,259 10,765,058CORRECTIONS 635,117 627,210 628,518 643,885YOUTH DEVELOPMENT 76,169 86,201 83,530 82,701CONSERVATION AND ENVIRONMENT 269,001 266,212 289,977 274,273EDUCATION 862,579 794,447 953,550 1,000,636AGRICULTURE & FORESTRY* 90,979 42,802 49,323 53,338ECONOMIC DEVELOPMENT* 85,255 82,898 75,849 83,776MILITARY & VETERANS AFFAIRS* 123,548 132,166 126,860 120,152WORKFORCE SUPPORT & TRAINING* 171,606 191,460 192,828 193,700OTHER -- -- -- --INTERGOVERNMENTAL 6,383,525 7,438,801 6,046,293 6,372,891CAPITAL OUTLAY 1,554,562 1,741,572 1,985,318 2,092,773DEBT SERVICE:

PRINCIPAL 421,837 381,991 531,969 283,013INTEREST 328,732 314,769 306,394 311,514ISSUANCE COSTS & OTHER CHARGES 8,428 5,487 5,916 21,325

TOTAL EXPENDITURES 28,257,855 28,828,173 25,609,611 25,830,755

EXCESS (DEFICIENCY) OF REVENUESOVER (UNDER) EXPENDITURES 591,951 106,961 (1,660,172) (1,651,390)

OTHER FINANCING SOURCES (USES)TRANSFERS IN 15,963,693 15,587,527 14,741,282 14,637,229TRANSFERS OUT (16,095,053) (15,712,228) (14,894,793) (14,784,679)LONG-TERM DEBT ISSUED 300,090 349,150 537,382 535,648PREMIUM ON LONG-TERM DEBT ISSUED 41,667 41,722 8,245 69,868REFUNDING BONDS ISSUED 596,955 415,080 368,585 1,082,590PREMIUM ON REFUNDING BONDS ISSUED 57,287 39,776 63,865 141,275PAYMENTS TO REFUNDED BOND ESCROW AGENT (638,969) (454,625) (431,712) (1,223,400)SALES OF GENERAL CAPITAL ASSETS 1,241 1,216 1,025 1,324INSURANCE RECOVERIES 10,316 12,348 8,999 --OTHER -- -- -- --

TOTAL OTHER FINANCING SOURCES 237,227 279,966 402,878 459,855

EXTRAORDINARY ITEM -- -- 200,000 --

NET CHANGE IN FUND BALANCES $ 829,178 $ 386,927 $ (1,057,294) $ (1,191,535)

DEBT SERVICE AS A PERCENTAGEOF NONCAPITAL EXPENDITURES 2.8% 2.6% 3.6% 2.6%

* New functions for 2015 formerly General Government


State of Louisiana

- 183 -

2014 2013 2012 2011 2010 2009

$ 11,553,209 $ 11,543,881 $ 12,930,021 $ 13,823,449 $ 13,469,624 $ 14,053,0628,692,410 8,152,282 7,927,305 7,668,449 7,462,892 8,936,444

140,296 210,625 141,240 138,518 146,841 175,503848,880 838,500 831,227 810,424 671,527 719,530915,701 683,994 844,927 925,682 1,007,980 1,163,356897,489 886,465 911,723 775,640 633,600 637,350863,538 876,564 948,106 916,938 933,549 1,073,318

-- -- -- -- -- --44,785 87,519 13,996 258,631 -- --

-- -- -- -- -- --606,387 688,113 265,458 308,458 706,121 547,335

24,562,695 23,967,943 24,814,003 25,626,189 25,032,134 27,305,898

4,394,827 4,065,713 4,827,035 5,764,484 4,911,766 6,435,83283,803 86,857 91,934 82,009 71,088 97,709

461,917 438,779 455,333 428,301 424,007 438,634312,080 312,227 308,651 306,984 296,083 305,054

10,174,503 10,006,567 9,884,320 9,671,602 9,497,394 9,372,783597,220 627,148 601,057 620,948 612,723 666,542103,472 98,823 110,992 125,651 138,506 154,821240,356 275,245 247,954 259,065 463,913 368,850

6,128,360 6,334,414 6,312,152 6,293,778 6,319,886 6,713,924-- -- -- -- -- ---- -- -- -- -- ---- -- -- -- -- ---- -- -- -- -- --

55 20,884 15,840 70,541 273,669 263,915586,420 515,763 505,680 488,336 491,143 584,944

1,596,212 1,843,811 2,000,974 2,502,456 2,384,130 2,941,236

1,188,276 329,643 281,575 273,765 268,705 266,108324,349 315,377 317,271 304,065 299,609 305,184

41,271 -- -- -- -- --26,233,121 25,271,251 25,960,768 27,191,985 26,452,622 28,915,536

(1,670,426) (1,303,308) (1,146,765) (1,565,796) (1,420,488) (1,609,638)

14,839,157 14,021,497 13,395,676 13,135,572 17,218,705 18,247,948(14,929,078) (14,121,707) (13,318,829) (13,133,963) (17,077,090) (18,105,772)

821,190 385,400 1,814,570 1,169,445 399,019 424,02672,385 58,825 253,845 115,999 -- --

841,145 633,980 -- -- -- --45,135 -- -- -- -- --

-- (645,040) (1,596,172) (528,128) (125,997) ---- -- -- -- -- --

24,898 221,489 -- -- -- ---- -- -- -- -- 3,585

1,714,832 554,444 549,090 758,925 414,637 569,787

-- -- -- -- -- --

$ 44,406 $ (748,864) $ (597,675) $ (806,871) $ (1,005,851) $ (1,039,851)

2.5% 2.8% 2.5% 2.4% 2.5% 2.3%

State of Louisiana

- 184 -

INDIVIDUAL INCOME TAX(by adjusted gross income bracket)LAST TEN FISCAL YEARS

FISCAL YEAR 2017NUMBER PERCENT TAX PERCENT

ADJUSTED GROSS INCOME CLASS OF RETURNS OF TOTAL LIABILITY OF TOTAL

LESS THAN $0 7,236 0.34% $ 37,018 0.00%$0 75,644 3.61% 1,143,444 0.04%$1 - 25,000 731,019 34.86% 84,079,108 3.01%$25,001 - 50,000 487,629 23.25% 320,371,379 11.48%$50,001 - 75,000 272,068 12.97% 334,463,867 11.99%$75,001 - 100,000 175,482 8.37% 322,333,694 11.55%$100,001 - 200,000 251,348 11.99% 788,049,649 28.24%GREATER THAN $200,000 96,760 4.61% 940,366,591 33.69%

TOTALS 2,097,186 100.00% $ 2,790,844,750 100.00%




TOTALS 2,170,603 100.00% $ 2,951,060,645 100.00%




TOTALS 2,112,939 100.00% $ 2,874,947,272 100.00%



LESS THAN $0 6,962 0.33% $ 478,127 0.02%$0 72,171 3.42% 771,101 0.03%$1 - 25,000 761,728 36.15% 109,556,041 3.96%$25,001 - 50,000 487,644 23.14% 331,047,654 11.98%$50,001 - 75,000 275,417 13.07% 345,454,498 12.50%$75,001 - 100,000 176,689 8.39% 332,844,053 12.04%$100,001 - 200,000 237,021 11.25% 744,864,927 26.95%GREATER THAN $200,000 89,600 4.25% 899,167,023 32.52%

TOTALS 2,107,232 100.00% $ 2,764,183,424 100.00%

Source: Louisiana Department of Revenue and Taxation

State of Louisiana

- 185 -




TOTALS 2,075,893 100.00% $ 2,610,815,010 100.00%




TOTALS 2,086,175 100.00% $ 2,522,650,911 100.00%




TOTALS 2,064,978 100.00% $ 2,505,777,326 100.00%



LESS THAN $0 7,651 0.38% $ 110,127 0.00%$0 104,399 5.12% 5,196,829 0.20%$1 - 25,000 755,861 37.07% 109,180,282 4.24%$25,001 - 50,000 484,343 23.75% 330,222,000 12.82%$50,001 - 75,000 267,195 13.10% 342,076,594 13.29%$75,001 - 100,000 164,539 8.07% 320,572,328 12.45%GREATER THAN $100,000 255,282 12.51% 1,468,034,921 57.00%

TOTALS 2,039,270 100.00% $ 2,575,393,081 100.00%

State of Louisiana

- 186 -




TOTALS 1,987,395 100.00% $ 2,951,517,849 100.00%




TOTALS 1,988,982 100.00% $ 2,905,702,007 100.00%

State of Louisiana

- 187 -

PERSONAL INCOME - EARNINGS BY MAJOR INDUSTRYLAST TEN CALENDAR YEARS


2017 2016 2015 2014 2013

PRIVATE EARNINGS:HEALTH CARE AND SOCIAL ASSISTANCE $ 16,929,400 $ 16,862,968 $ 15,715,551 $ 15,050,009 $ 14,207,471PROFESSIONAL, SCIENTIFIC, AND TECHNICAL 9,738,967 10,053,953 10,139,344 9,859,591 9,378,961MINING 6,097,983 9,215,144 8,071,426 8,234,447 7,757,339CONSTRUCTION 13,377,156 12,785,829 13,290,199 13,237,980 11,833,726RETAIL TRADE 9,091,195 9,268,112 9,055,372 8,814,700 8,576,112TRANSPORTATION AND WAREHOUSING 5,840,500 6,251,606 7,473,896 7,349,838 6,912,864MANUFACTURING - DURABLE GOODS 4,960,925 5,165,986 5,670,417 5,925,487 5,559,024MANUFACTURING - NONDURABLE GOODS 7,962,627 7,993,534 8,058,119 7,678,061 7,351,905WHOLESALE TRADE 5,980,898 6,045,026 6,026,901 6,069,106 5,849,153FARM 366,421 763,631 929,160 1,373,639 1,673,965FINANCE AND INSURANCE 5,334,686 5,425,402 5,259,144 5,319,813 5,093,069OTHER SERVICES 27,885,689 28,203,521 29,650,736 28,402,242 27,287,269

GOVERNMENT AND GOVERNMENT ENTERPRISES:FEDERAL, CIVILIAN 3,276,979 3,085,766 3,031,110 2,878,289 2,869,756MILITARY 2,168,453 2,149,151 2,129,276 2,275,155 2,356,097STATE AND LOCAL 18,462,667 17,668,004 17,717,917 17,443,316 18,060,939

TOTAL PERSONAL INCOME - EARNINGS BY MAJOR INDUSTRY $ 137,474,546 $ 140,937,633 $ 142,218,568 $ 139,911,673 $ 134,767,650

2012 2011 2010 2009 2008

PRIVATE EARNINGS:HEALTH CARE AND SOCIAL ASSISTANCE $ 13,837,762 $ 13,699,150 $ 13,029,493 $ 12,247,791 $ 11,635,605PROFESSIONAL, SCIENTIFIC, AND TECHNICAL 8,925,518 8,730,072 8,339,346 8,156,865 8,312,362MINING 7,882,683 6,124,611 5,096,485 7,222,814 8,119,855CONSTRUCTION 10,995,566 10,191,916 9,561,405 9,552,079 9,993,692RETAIL TRADE 8,244,257 8,087,269 7,770,214 7,326,500 7,535,722TRANSPORTATION AND WAREHOUSING 6,359,258 6,559,286 6,016,411 5,625,326 5,920,279MANUFACTURING - DURABLE GOODS 5,438,151 5,257,344 4,825,233 4,996,495 5,468,365MANUFACTURING - NONDURABLE GOODS 7,528,374 7,380,719 6,758,768 6,501,021 6,494,728WHOLESALE TRADE 5,666,896 5,479,840 5,157,434 5,065,263 5,318,695FARM 1,575,546 953,157 836,006 833,800 786,867FINANCE AND INSURANCE 4,714,445 4,981,990 4,557,147 4,294,107 4,399,740OTHER SERVICES 25,601,221 24,239,200 23,239,428 22,324,192 22,951,905

GOVERNMENT AND GOVERNMENT ENTERPRISES:FEDERAL, CIVILIAN 2,912,019 3,199,357 3,208,297 3,139,003 3,055,825MILITARY 2,426,059 3,187,955 3,093,552 2,733,951 2,553,824STATE AND LOCAL 18,623,299 17,587,770 18,095,539 17,656,744 17,068,069

TOTAL PERSONAL INCOME - EARNINGS BY MAJOR INDUSTRY $ 130,731,054 $ 125,659,636 $ 119,584,758 117,675,951 119,615,533

Source: Survey of Current Business, U.S. Department of Commerce, Bureau of Economic Analysis

State of Louisiana

- 188 -

TAX RATE BY MAJOR SOURCES OF REVENUE

TAX TYPE COLLECTION UNIT RATE/DESCRIPTION

Alcoholic Beverage TaxesBeer Tax Department of Revenue $12.50 per 31-gallon barrel. This includes all alcoholic beverages with alcohol content of

6% or less and malt beverages with alcohol content more than 6%.

Liquor and Wine Tax Department of Revenue $0.80 per liter on liquor; $0.55 per liter on sparkling wine and still wines with alcoholic content more than 24%; $0.20 per liter on still wine with alcoholic content not more than 14%; $0.35 per liter on still wine with alcoholic content over 14% but not more than 24%.

Corporation Franchise Tax Department of Revenue The tax is currently assessed on the taxable base at the rate of $1.50 per $1,000 on the first $300,000 and $3.00 per $1,000 over $300,000. The minimum tax of $10 per year was repealed effective for franchise taxable period beginning on or after January 1, 2010.

Gasoline Tax Department of Revenue $0.20 per gallon. Petroleum Products Testing Fee – the fee for testing the quality and quantity of petroleum products is 4/32 cent per gallon.

Hazardous Waste Disposal Tax Department of Revenue $30 per dry-weight ton for waste disposed of on-site, $40 per dry-weight ton for waste disposed of off-site from where generated, and $100 per dry-weight ton on extremely hazardous waste disposed of in Louisiana.

Income TaxCorporate Income Tax Department of Revenue 4% on the first $25,000 of net taxable income; 5% on the next $25,000; 6% on the next

$50,000; 7% on the next $100,000; and 8% on all net taxable income in excess of $200,000.

Individual Income Tax Department of Revenue For taxable periods beginning after December 31, 2008, the rate of tax for taxpayers filing as single, married filing separately, or head of household is: 2% on the first $12,500; 4% on the next $37,500, and 6% on the taxable income above $50,000. Married persons filing a joint return or qualifying surviving spouse are taxed at the following rates: 2% on the first $25,000; 4% on the next $75,000; and 6% on the taxable income above $100,000. The combined personal exemption and standard deduction is $4,500 for single individuals and married persons filing separately; $9,000 for married couples filing jointly, qualified surviving spouses, and heads of households. A dependency deduction of $1,000 is allowed for each dependent, each taxpayer and/or spouse who is 65 years of age or older, and for each taxpayer and/or spouse who is blind.

Inheritance Tax Department of Revenue Inheritance tax was repealed effective January 1, 2010.

Insurance Excise License Tax Department of Insurance A. The tax rate for life, accident, health and service is $140 for annual premiums up to $7,000 and $225 for each additional $10,000 or fraction thereof.

B. The rate for fire, marine, transportation and casualty and surety is $185 for annual premiums up to $6,000 and $300 for each additional $10,000 or fraction thereof.

C. The annual tax rate for Health Maintenance Organizations (HMO) is $550 for every $10,000 of gross annual premium collected in lieu of state income tax and corporation franchise tax.

Mineral Resources -Royalties and Bonuses Department of Natural

ResourcesThese are not taxes. However, all oil and gas leases provide for a bonus, which is bid on at the time the lease is given. Leasehold payments, such as "delay rentals," "in-lieu royalty," and "deferred development" payments are also provided for in the lease. Annual rentals cannot, by statutory law, be less than one-half the cash bonus amount. Royalty which is bid on at the lease sale cannot, by statutory law, be less than 1/8th of the value of production. Mineral leases for solid mineral, such as sulfur, potash, salt, or lignite, provide for a royalty based on tonnage production at a market price paid per ton.

State of Louisiana

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TAX TYPE COLLECTION UNIT RATE/DESCRIPTION

Motor Vehicle - Licensesand Fees Department of Public

SafetyA. (1) For each passenger-carrying automobile, van, low-speed vehicle as defined in R.S.

32:1(40), or other motor vehicle carrying only persons and their personal effects exclusively, not meeting the requirements of R.S. 47:463.5 or using or operating upon rails or upon permanent tracks and operated only for private use, an annual registration license shall be collected each two years in advance in amounts fixed by the following schedule: (a) For an automobile having an actual value of ten thousand dollars or less, the annual license tax shall be ten dollars. (b) For an automobile having an actual value of greater than ten thousand dollars, the annual license tax shall be the base tax of ten dollars plus an additional tax of one dollar per each one thousand dollars of actual value above ten thousand dollars. In addition, truck fees are established in La. R.S. 47:462. The max weight a truck can be registered for is 88,000 lbs at a rate of $563.20 annually.

B. Personal driver's license fees range from $6.75 to $54.00 and are valid for six years. Fees vary based on class of license, age of applicant, and office of issuance. Other driver's license fees may vary. In addition to the license fees stated, a handling fee and service fee may be assessed.

C. LRS 32:429 authorizes the collection of a fee not to exceed $4.50 at a local field office, $6.00 if within the parishes of Orleans or Jefferson, per service or transaction. This fee is used solely to defray cost of operations of that office not fully funded by the State.

Natural Gas Franchise Department of Revenue 1% of the gross receipts from the operation of franchises or charters in the State.

Sales Tax Department of Revenue Effective April 1, 2016, 5% sales tax is collected on the sale, use, consumption, distribution, or storage for use or consumption of any tangible personal property, on retail sales, leases, and rentals, and on certain sales of services including repairs of tangible personal property; 4% aggregate sales tax is collected on intrastate telecommunications and certain prepaid telephone services; effective April 1, 2016, the sales tax rate on interstate telecommunication services was increased to 3%. Many statutory exemptions are partially suspended and are currently taxed at the suspended rates of 1%, 2%, 3%, and 4%.

Severance Tax Department of Revenue A. The tax on oil/condensate is based on the value. The full rate of oil/condensate is 12.5% of the value. The incapable oil rate is 6.25% of the value. The stripper oil rate is 3.125% of the value. Stripper oil is exempt as long as the average value is less than $20 per barrel.

B. The severance tax on natural gas is based on per thousand cubic feet. The full rate is adjusted annually on July 1, and may never be less than 7 cents per thousand cubic feet. As of July 1, 2017, the full rate is $0.111 per thousand cubic feet at 15.025 pounds per square inch absolute. The rate on incapable oil well gas is $0.03 per thousand cubic feet. The rate on incapable gas well gas is $0.013 per thousand cubic feet.

C. The tax rate on sulfur is $1.03 per long-ton (2,240 pounds).D. The tax rate on salt is $0.06 per ton.E. The tax rates on timber are 2.25% of stumpage value and 5% of stumpage value of

pulpwood.F. The tax rate on shell and sand is $0.06 per ton. G. The tax rate on stone is $0.03 per ton.H. The tax rate on lignite is $0.12 per ton.I. The tax rate on marble is $0.20 per ton.

Special Fuels Tax Department of Revenue The tax on diesel is levied at a rate of $0.20 per gallon. It is subject to the Petroleum Products Testing Fee of 4/32 cents per gallon effective September 1, 2003. Effective January 1, 2016, a tax of $0.20 per gallon is levied on compressed natural gas (CNG) and liquefied natural gas (LNG) and a tax of $0.146 per gallon is levied on liquefied petroleum gas (LPG) when used to power a motor fuels vehicle. Prior to January 1, 2016, the tax had been collected by the purchase/issuance of an annual special fuels decal obtained for each vehicle operating on one of these fuels.

Surface Miningand Reclamation Fee Department of Revenue The fee on coal and lignite mined in Louisiana is $0.08 per ton.

Tobacco Tax Department of Revenue An excise tax is imposed on the first dealer who handles a tobacco product in the State. Cigars invoiced up to $120 per thousand are taxed at 8% of the manufacturer’s net invoice price, whereas cigars invoiced over $120 per thousand are taxed at 20% on the net invoice price. The tax rate on smoking tobacco is computed at 33% of the invoice price to wholesalers. The tax rate on smokeless tobacco is 20% of the invoice price. The tax rate on cigarettes is $0.054 per cigarette. Effective August 1, 2015, an excise tax is levied at $0.05 per milliliter of consumable liquid solution or other material containing nicotine that is depleted as a vapor product.

Transportation and Communications Utilities Tax Department of Revenue 2% of the gross receipts from intrastate business.

State of Louisiana

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RATIOS OF OUTSTANDING DEBT BY TYPELAST TEN FISCAL YEARS

(EXPRESSED IN THOUSANDS EXCEPT PERCENTAGE OF PERSONAL INCOME AND TOTAL DEBT PER CAPITA)

GOVERNMENTAL ACTIVITIES

TOTAL TIMED AND TOBACCOGENERAL GENERAL STATE HIGHWAY SETTLEMENT

FISCAL OBLIGATION OBLIGATION IMPROVEMENT FINANCINGYEAR BONDS (1) PER CAPITA ** BONDS CORPORATION OTHER (2)

2018 $ 4,870,460 $ * $ 4,902,797 $ 705,359 $ 388,3782017 4,831,735 1,032 5,133,638 823,011 447,6092016 4,610,809 985 5,274,066 928,140 512,0402015 4,672,593 1,001 5,439,029 1,065,093 441,4362014 4,223,157 908 5,736,939 1,101,290 487,0922013 3,838,301 830 5,554,414 1,837,083 689,5952012 3,689,767 802 5,634,181 2,049,027 719,9592011 3,449,859 754 5,884,637 2,178,345 787,4162010 3,667,101 807 5,138,234 1,173,903 863,6552009 3,691,879 822 4,958,754 1,264,174 945,415

BUSINESS-TYPE ACTIVITIES

LOUISIANA TOTAL PERCENTAGE TOTALFISCAL TRANSPORTATION PRIMARY OF PERSONAL DEBT PERYEAR OTHER (3) AUTHORITY GOVERNMENT INCOME CAPITA** (4)

2018 $ 568,584 $ 256,932 $ 11,692,510 * $ *2017 621,930 263,153 12,121,076 8.82 2,5882016 670,412 269,278 12,264,745 8.70 2,6202015 710,051 275,234 12,603,436 8.86 2,6992014 477,428 281,439 12,307,345 8.80 2,6472013 509,462 325,344 12,754,199 9.46 2,7582012 -- 328,604 12,421,538 9.50 2,6992011 -- 330,758 12,631,015 10.05 2,7612010 -- 335,609 11,178,502 9.35 2,4602009 -- 251,041 11,111,263 9.44 2,474

(1) General Obligation Bonds less Reimbursable Contracts(2) Includes LA Correctional Facilities Corporation, Public Safety LPFA, Department of Corrections,

Office Facilities Corporation, and Unclaimed Property Special Revenue Bonds(3) Includes LA Community and Technical Colleges and LA Agricultural Finance Authority (2013-2017)(4) Debt Per Capita = Total Primary Government / Population

* Information not yet available** Expressed in whole dollars

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State of Louisiana

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LEGAL DEBT MARGIN AND DEBT LIMITATIONSLAST TEN FISCAL YEARS


2018 2017 2016

LEGAL DEBT MARGIN

BOND AUTHORIZATION LIMITATION $ 27,482,964 $ 26,095,025 $ 25,523,769

TOTAL NET DEBT APPLICABLE TO LIMITATION 3,413,625 3,326,290 3,225,275

LEGAL DEBT MARGIN $ 24,069,339 $ 22,768,735 $ 22,298,494

TOTAL NET DEBT APPLICABLE TO THELIMIT AS A PERCENTAGE OF DEBT LIMIT 12.42% 12.75% 12.64%

LEGAL DEBT MARGIN CALCULATION FOR FISCAL YEAR 2018

BSRF REVENUES (3 YEARS) $ 41,224,446

DEBT LIMIT CALCULATION (Revenues divided by 3 times 2) 27,482,964DEBT APPLICABLE TO LIMIT:

GENERAL OBLIGATION BONDS 3,413,625LEGAL DEBT MARGIN $ 24,069,339

TAX-SUPPORTED DEBT LIMITATION

ESTIMATED GENERAL FUND AND DEDICATED FUNDREVENUE PER REVENUE ESTIMATING $ 12,110,200 $ 11,795,800 $ 11,265,700

PERCENTAGE ESTABLISHED PER LRS 39:1367 6.00% 6.00% 6.00%

NET STATE TAX-SUPPORTED DEBT LIMIT 726,612 707,748 675,942

TOTAL NET STATE TAX-SUPPORTED DEBT PAID $ 659,078 $ 637,090 $ 470,575

PERCENTAGE OF ESTIMATED GENERAL FUND ANDDEDICATED FUND REVENUES PER REVENUE ESTIMATING 5.44% 5.40% 4.18%

GENERAL OBLIGATION DEBT LIMITATION

THREE YEAR AVERAGE BOND SECURITY REVENUES $ 13,741,482 $ 13,047,513 $ 12,761,884

PERCENTAGE DEBT LIMITATION 10.00% 10.00% 10.00%

GENERAL OBLIGATION DEBT LIMITATION 1,374,148 1,304,751 1,276,188

HIGHEST CURRENT OR FUTURE ANNUALGENERAL OBLIGATION DEBT SERVICE REQUIREMENT $ 368,626 $ 356,113 $ 583,994

PERCENTAGE OF THE GENERAL OBLIGATION DEBTSERVICE REQUIREMENT 26.83% 27.29% 45.76%

State of Louisiana

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2015 2014 2013 2012 2011 2010 2009

$ 25,110,650 $ 24,492,802 $ 23,292,744 $ 22,551,477 $ 23,423,522 $ 25,194,775 $ 26,856,498

3,129,840 2,817,410 2,524,325 2,543,225 2,205,655 2,099,285 2,076,570

$ 21,980,810 $ 21,675,392 $ 20,768,419 $ 20,008,252 $ 21,217,867 $ 23,095,490 $ 24,779,928

12.46% 11.50% 10.80% 11.28% 9.42% 8.33% 7.73%

$ 10,523,400 $ 10,314,000 $ 9,852,700 $ 9,926,000 $ 9,486,200 $ 9,868,300 $ 11,144,900

6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00%

631,404 618,840 591,162 595,560 569,172 592,098 668,694

$ 607,318 $ 594,468 $ 566,762 $ 518,024 $ 509,161 $ 483,010 $ 421,408

5.77% 5.76% 5.75% 5.22% 5.37% 4.89% 3.78%

$ 12,555,325 $ 12,246,401 $ 11,646,372 $ 11,275,738 $ 11,711,761 $ 12,597,387 $ 13,428,249

10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%

1,255,533 1,224,640 1,164,637 1,127,574 1,171,176 1,259,739 1,342,825

$ 360,575 $ 332,153 $ 316,019 $ 298,833 $ 281,732 $ 322,987 $ 265,315

28.72% 27.12% 27.10% 26.50% 24.06% 25.64% 19.76%

State of Louisiana

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PLEDGED REVENUE BOND COVERAGELAST TEN FISCAL YEARS

(EXPRESSED IN THOUSANDS EXCEPT COVERAGE RATIO)

FISCALYEAR DIRECT AVAILABLE ANNUAL

ENDED GROSS OPERATING FOR DEBT DEBT COVERAGEJUNE 30 REVENUE EXPENSES SERVICE PRINCIPAL INTEREST SERVICE RATIO

Louisiana Agricultural Finance Authority * 2018 $ 5,706 $ 4,295 $ 1,411 $ 8,735 $ 229 $ 8,964 0.162017 4,035 3,024 1,011 13,805 784 14,589 0.072016 13,985 3,442 10,543 8,285 1,216 9,501 1.112015 13,745 4,159 9,586 8,105 1,626 9,731 0.992014 13,904 4,616 9,288 7,785 1,927 9,712 0.962013 21,402 4,889 16,513 13,577 3,712 17,289 0.962012 15,437 69,006 (53,569) 9,197 2,507 11,704 (4.58)2011 16,282 5,186 11,096 9,082 3,034 12,116 0.922010 12,284 5,106 7,178 2,222 3,300 5,522 1.302009 14,764 6,980 7,784 17,222 10,976 28,198 0.28

Louisiana Transportation Authority 2018 $ 4,931 $ 23 $ 4,908 $ 855 $ 5,365 $ 6,220 0.792017 4,327 23 4,304 735 5,391 6,126 0.702016 5,281 22 5,259 545 5,411 5,956 0.882015 6,135 22 6,113 170 6,035 6,205 0.992014 5,816 2 5,814 -- 14,815 14,815 0.392013 3,637 2 3,635 -- 5,530 5,530 0.662012 3,803 12 3,791 -- 3,708 3,708 1.022011 4,562 13 4,549 645 6,315 6,960 0.652010 2,853 23 2,830 -- 13,632 13,632 0.212009 -- 12 (12) -- 6,624 6,624 0.00

Tobacco Settlement Financing Corporation 2018 $ 93,967 $ 98 $ 93,869 $ 67,880 $ 27,445 $ 95,325 0.982017 85,123 119 85,004 56,455 30,268 86,723 0.982016 82,738 108 82,630 75,870 33,851 109,721 0.752015 83,603 140 83,463 -- 32,796 32,796 2.542014 85,008 3,256 81,752 -- 36,416 36,416 2.242013 129,785 172 129,613 84,800 47,856 132,656 0.982012 89,598 89 89,509 39,835 50,047 89,882 1.002011 87,258 100 87,158 36,110 52,033 88,143 0.992010 92,281 111 92,170 38,960 51,311 90,271 1.022009 109,983 127 109,856 53,675 57,746 111,421 0.99

State Highway Improvement Bonds 2018 $ 57,817 $ -- $ 57,817 $ 10,210 $ 12,782 $ 22,992 2.512017 58,255 -- 58,255 9,755 13,240 22,995 2.532016 58,412 -- 58,412 9,320 13,676 22,996 2.542015 53,070 -- 53,070 6,225 16,771 22,996 2.312014 52,645 -- 52,645 1,950 4,932 6,882 7.652013 -- -- -- -- -- -- --2012 -- -- -- -- -- -- --2011 -- -- -- -- -- -- --2010 -- -- -- -- -- -- --2009 -- -- -- -- -- -- --

Transportation Infrastructure Model for Economic 2018 $ 601,841 $ 4,711 $ 597,130 $ 26,870 $ 114,248 $ 141,118 4.23 Development 2017 634,884 224 634,660 23,705 116,239 139,944 4.54

2016 622,234 300 621,934 21,450 123,580 145,030 4.292015 606,410 11,845 594,565 18,875 123,401 142,276 4.182014 588,830 15,970 572,860 17,375 112,246 129,621 4.422013 582,760 473 582,287 14,430 140,054 154,484 3.772012 530,700 4,160 526,540 8,270 118,569 126,839 4.152011 488,520 15 488,505 6,090 113,266 119,356 4.092010 489,235 20 489,215 5,880 100,788 106,668 4.592009 498,625 20 498,605 5,685 92,634 98,319 5.07

State of Louisiana

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FISCALYEAR DIRECT AVAILABLE ANNUAL

ENDED GROSS OPERATING FOR DEBT DEBT COVERAGEJUNE 30 REVENUE EXPENSES SERVICE PRINCIPAL INTEREST SERVICE RATIO

LPFA-Department of Public Safety 2018 $ 17,934 $ -- $ 17,934 $ 5,720 $ 1,006 $ 6,726 2.672017 17,238 -- 17,238 5,440 1,314 6,754 2.552016 17,134 -- 17,134 5,185 1,579 6,764 2.532015 15,099 -- 15,099 4,930 1,832 6,762 2.232014 14,931 -- 14,931 4,705 1,073 5,778 2.582013 18,973 -- 18,973 4,480 2,303 6,783 2.802012 16,589 -- 16,589 4,265 2,521 6,786 2.442011 13,410 -- 13,410 4,065 2,730 6,795 1.972010 13,555 -- 13,555 3,870 2,928 6,798 1.992009 13,205 -- 13,205 2,400 3,085 5,485 2.41

Unclaimed Property Special Revenue Bonds 2018 $ 47,425 $ -- $ 47,425 $ 6,315 $ 8,513 $ 14,828 3.202017 40,991 -- 40,991 6,150 8,729 14,879 2.752016 43,021 -- 43,021 3,825 7,085 10,910 3.942015 15,000 -- 15,000 -- 5,358 5,358 2.802014 15,000 -- 15,000 -- 3,691 3,691 4.062013 -- -- -- -- -- -- --2012 -- -- -- -- -- -- --2011 -- -- -- -- -- -- --2010 -- -- -- -- -- -- --2009 -- -- -- -- -- -- --

* In Fiscal Year 2013, Louisiana Agricultural Finance Authority moved to Primary Government - Proprietary Funds.

See Note 8, Section J, for additional information on Pledged Revenues Source: Office of Statewide Reporting and Accounting Policy

State of Louisiana

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DEMOGRAPHIC AND ECONOMIC STATISTICSLAST TEN CALENDAR YEARS

PER CAPITAPERSONAL PERSONAL MEDIAN

YEAR POPULATION INCOME INCOME AGE(A)(B)(1) (A)(1) (C)(1) (2)

2017 4,684 $ 203,725,026 $ 43,491 38.1 2016 4,682 198,025,102 42,298 37.9 2015 4,670 200,594,438 42,947 36.4 2014 4,650 195,426,167 42,030 36.3 2013 4,625 190,589,832 41,204 36.1 2012 4,602 184,340,179 40,057 35.9 2011 4,575 176,356,255 38,549 35.9 2010 4,544 168,230,509 37,021 35.8 2009 4,492 168,544,450 37,520 35.4 2008 4,411 160,658,930 36,424 35.6

CIVILIAN LOUISIANA U.S.LABOR UNEMPLOYMENT UNEMPLOYMENT

YEAR FORCE RATE RATE(A)(3) (3) (3)

2017 2,112 5.1% 4.4%2016 2,120 6.1 4.92015 2,159 6.3 5.32014 2,154 6.4 6.22013 2,099 6.2 7.42012 2,084 6.4 8.12011 2,060 7.3 8.92010 2,082 7.5 9.62009 2,068 6.8 9.32008 2,079 4.6 5.8

(A) Expressed in thousands(B) Population figures are estimated and are revised yearly; however, only the original estimates are reported here(C) Expressed in dollars

Sources: (1) Survey of Current Business, U.S. Department of Commerce, Bureau of Economic Analysis(2) U.S. Census Bureau(3) U.S. Department of Labor, Bureau of Labor Statistics

State of Louisiana

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PRINCIPAL EMPLOYERSCURRENT YEAR AND NINE YEARS AGO

2018 EMPLOYERS RANGE

STATE OF LOUISIANA (1) 40,000+OCHSNER HEALTH SYSTEM 19,000+LOUISIANA STATE UNIVERSITY SYSTEM (2) 13,000+UNIVERSITY OF LOUISIANA SYSTEM (2) 8,000+OUR LADY OF THE LAKE MEDICAL CENTER 5,000 - 9,999INGALLS SHIPBUILDING 5,000 - 9,999TULANE UNIVERSITY 5,000 - 9,999HILTON-NEW ORLEANS RIVERSIDE 5,000 - 9,999LAFAYETTE GENERAL HEALTH 5,000 - 9,999WILLIS KNIGHTON MEDICAL CENTER 5,000 - 9,999LOUISIANA COMMUNITY AND TECHNICAL COLLEGE SYSTEM (1) 5,000 - 9,999SOUTHERN UNIVERSITY SYSTEM (2) 1,000 - 4,999U.S. POST OFFICE 1,000 - 4,999PARISH OF JEFFERSON 1,000 - 4,999ACADIAN AMBULANCE 1,000 - 4,999

2009 EMPLOYERS *

STATE OF LOUISIANA (1) 50,000+LOUISIANA STATE UNIVERSITY SYSTEM (2) 25,000+OCHSNER HEALTH SYSTEM 10,000+UNIVERSITY OF LOUISIANA SYSTEM (2) 5,000-9,999NORTHROP GRUMMAN SHIP SYSTEMS 5,000-9,999LAFAYETTE MEDICAL CENTER 5,000-9,999EAST JEFFERSON HOSPITAL 5,000-9,999TULANE UNIVERSITY 5,000-9,999LOUISIANA COMMUNITY & TECHNICAL COLLEGE SYSTEM (2) 5,000-9,999WILLIS KNIGHTON HEALTH SYSTEM 1,000-4,999U.S. POST OFFICE 1,000-4,999OUR LADY OF THE LAKE MEDICAL CENTER 1,000-4,999SOUTHERN UNIVERSITY SYSTEM (2) 1,000-4,999HARRAH'S ENTERTAINMENT 1,000-4,999NORTH OAKS HEALTH SYSTEM 1,000-4,999

* 2009 employer list is from Louisiana's Comprehensive Annual Financial Reportfor the year ended June 30, 2009

(1) Government - Primary(2) Government - Component Unit

Note: Louisiana Workforce Commission is no longer able to provide largest employer information due to tighter confidentiality regulations of the Bureau of Labor Statistics.

State of Louisiana

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LOUISIANA STATE EMPLOYEES BY FUNCTION/PROGRAMLAST TEN FISCAL YEARS

2018 2017 2016 2015

GENERAL GOVERNMENTCLASSIFIED 3,881 3,850 4,122 3,954UNCLASSIFIED 1,581 1,521 1,529 1,587

CULTURE, RECREATION, AND TOURISMCLASSIFIED 658 705 675 670UNCLASSIFIED 439 428 432 412

TRANSPORTATION AND DEVELOPMENTCLASSIFIED 4,202 4,258 4,237 4,220UNCLASSIFIED 125 127 115 117

PUBLIC SAFETYCLASSIFIED 2,619 2,568 2,525 2,522UNCLASSIFIED 467 458 463 499

HEALTH AND WELFARECLASSIFIED 10,785 10,508 10,194 10,551UNCLASSIFIED 684 902 786 843

CORRECTIONSCLASSIFIED 4,903 4,795 4,833 4,915UNCLASSIFIED 117 114 106 104

YOUTH DEVELOPMENT CLASSIFIED 733 737 735 739UNCLASSIFIED 71 77 86 79

CONSERVATION AND ENVIRONMENTCLASSIFIED 1,913 1,946 1,891 1,951UNCLASSIFIED 157 147 145 124

EDUCATIONCLASSIFIED 801 797 763 781UNCLASSIFIED 677 666 648 815

AGRICULTURE*CLASSIFIED 546 528 500 479UNCLASSIFIED 52 60 65 78

WORKFORCE DEVELOPMENT*CLASSIFIED 900 894 943 1,023UNCLASSIFIED 58 58 68 84

ECONOMIC DEVELOPMENT*CLASSIFIED 60 61 59 57UNCLASSIFIED 57 50 55 58

MILITARY AND VETERANS AFFAIRS*CLASSIFIED 826 888 820 793UNCLASSIFIED 809 783 826 855

COLLEGES AND UNIVERSITIESCLASSIFIED 5,443 5,625 5,810 6,135UNCLASSIFIED 23,744 25,001 23,088 22,279

OTHERCLASSIFIED 1,548 1,540 1,577 1,564UNCLASSIFIED 861 861 863 862

TOTAL 69,717 70,953 68,959 69,150

* New Functions for 2015 formerly within General Government

Source: Louisiana Department of State Civil Service

State of Louisiana

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2014 2013 2012 2011 2010 2009

6,525 6,011 6,315 6,422 6,691 6,4103,283 3,661 3,772 3,814 3,850 4,056

852 603 595 604 659 667443 641 579 532 525 567

4,235 4,336 4,441 4,466 4,479 4,668134 96 101 91 98 144

2,446 2,536 2,548 2,645 2,811 2,836141 213 239 173 156 111

10,465 10,002 12,200 13,346 15,084 16,965912 1,168 1,238 1,142 1,368 1,455

4,827 4,758 5,075 5,179 5,684 6,14577 175 186 142 140 147

800 843 918 916 971 1,01280 106 110 110 93 155

1,818 1,850 1,928 1,971 2,006 2,166124 152 145 138 160 183

759 779 922 1,011 1,004 1,1401,041 1,871 2,058 2,302 2,446 2,923

-- -- -- -- -- ---- -- -- -- -- --

-- -- -- -- -- ---- -- -- -- -- --

-- -- -- -- -- ---- -- -- -- -- --

-- -- -- -- -- ---- -- -- -- -- --

6,533 10,059 15,563 16,603 17,478 18,20922,074 22,978 24,428 24,717 26,899 27,807

1,558 1,525 1,526 1,567 1,545 1,794900 963 976 983 953 926

70,027 75,326 85,863 88,874 95,100 100,486

State of Louisiana

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OPERATING INDICATORS BY FUNCTION/PROGRAMLAST TEN YEARS

2018 2017 2016 2015

GENERAL GOVERNMENTAGRICULTURE - CROPS (in thousands) - [1] * $1,997,566 $1,780,005 $2,024,038AGRICULTURE - LIVESTOCK (in thousands) - [1] * $1,096,216 $1,029,661 $1,273,555AGRICULTURE - TIMBER (in thousands) - [1] * $490,527 $415,123 $463,747ELECTIONS - REGISTERED VOTERS (in thousands) - [1] * 2,977 2,976 2,910REVENUE - TAX RETURNS FILED (in thousands) - [2] 4,170 3,871 3,808 2,858REVENUE - TAX RETURNS FILED ELECTRONICALLY - [2] 79% 80% 80% 80%

CULTURE, RECREATION, AND TOURISMSTATE PARKS VISITORS (in thousands) - [2] 1,641 1,772 1,994 1,899

TRANSPORTATION AND DEVELOPMENTNUMBER OF BRIDGES - [1] 12,629 12,741 12,748 12,907

PUBLIC SAFETYSTATE POLICE ROAD PATROL MILEAGE (in thousands) - [2] 13,687 9,855 13,425 12,788

HEALTH AND WELFARELDH - MEDICAID CLAIMS PROCESSED (in thousands) - [2] 89,280 77,196 61,836 57,690LDH - CHILDREN IMMUNIZED - [3] * 92% 95% 96%

CORRECTIONSAVERAGE DAILY COST PER INMATE BED - [2] $60.67 $55.39 $53.74 $53.79

CONSERVATION AND ENVIRONMENTWLF - FISH AND SHELLFISH (in thousands) - [1] * $308,519 $384,260 $384,519WLF - ALLIGATOR AND GAME (in thousands) - [1, 6] * $87,697 $83,393 $84,381WLF - HUNTER DAYS ANNUALLY (in millions) - [1] * 5.9 5.9 6.0WLF - LICENSED COMMERCIAL FISHERMEN - [1] * 11,879 13,430 13,929

EDUCATIONGRADES K-12 (number of students) - [3] * 687,644 688,319 690,267AVERAGE ACT SCORE - [4] 19.3 19.6 19.5 19.2START PRINCIPAL DEPOSITS (in thousands, cumulative) - [1] * $86,625 $75,152 $72,618TOPS TUITION AWARDS (in thousands) - [2] $293,562 $201,627 $262,489 $249,995TOPS AWARDS RECIPIENTS (number of students) - [2] 51,961 50,858 51,106 48,790COLLEGES & UNIVERSITIES (number of students) - [5] * 212,361 211,248 215,200

* Information for this year is not yet available

Sources: [1] based on calendar years[2] based on fiscal years[3] based on school year reported on October 1[4] based on graduating class[5] based on preliminary amounts reported on September 1[6] 2013 was a transition year to coincide tag year with fiscal year

State of Louisiana

- 201 -

2014 2013 2012 2011 2010 2009

$2,649,907 $2,766,125 $2,962,500 $2,402,228 $1,935,528 $1,761,590$1,342,101 $1,159,661 $1,165,382 $1,058,342 $977,025 $777,568

$386,975 $425,046 $337,288 $446,905 $417,493 $408,1122,948 2,918 2,920 2,861 2,941 2,9163,517 3,577 3,952 4,332 4,538 4,663

77% 74% 61% 48% 53% 48%

1,747 1,967 2,151 2,242 2,069 2,079

12,982 12,955 13,095 13,016 13,166 13,154

8,555 8,958 11,305 13,055 13,615 14,373

53,814 56,395 60,498 64,703 62,618 57,26194% 94% 93% 95% 95% 99%

$50.21 $53.43 $54.82 $55.77 $55.54 $61.49

$413,854 $317,515 $265,092 $238,481 $188,355 $241,611$97,431 $39,106 $84,738 $66,418 $38,523 $51,234

7.0 7.0 5.4 5.8 5.0 4.913,651 13,272 13,629 14,301 14,396 12,266

717,896 713,110 707,464 673,968 666,901 656,69619.1 20.3 20.3 20.2 20.1 20.1

$71,619 $64,111 $62,913 $52,720 $50,852 $45,575$244,627 $192,085 $166,886 $144,450 $129,868 $123,032

48,224 46,263 44,433 43,782 42,375 43,203216,123 216,613 221,831 225,835 225,198 220,381

State of Louisiana

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CAPITAL ASSETS STATISTICS BY FUNCTION/PROGRAMLAST TEN FISCAL YEARS

2018 2017 2016 2015 2014

CULTURE, RECREATION, AND TOURISMSTATE PARKS 24 25 25 25 25STATE PARKS (ACREAGE) 29,819 32,047 32,047 32,047 32,047STATE HISTORIC SITES 21 21 21 21 21STATE HISTORIC SITES (ACREAGE) 2,855 2,850 2,850 2,850 2,567

TRANSPORTATION AND DEVELOPMENTSTATE HIGHWAYS (MILES) 16,679 16,679 16,698 16,699 16,634PARISH ROADS (MILES) 32,729 32,729 32,729 32,729 32,735CITY STREETS (MILES) 11,297 11,297 11,297 11,297 11,936BRIDGES ON STATE HIGHWAYS 7,834 7,828 7,932 8,002 7,887BRIDGES OFF STATE HIGHWAYS 4,795 4,761 4,829 4,905 4,934

PUBLIC SAFETYTROOPS 9 9 9 9 9

2013 2012 2011 2010 2009

CULTURE, RECREATION, AND TOURISMSTATE PARKS 25 26 26 26 25STATE PARKS (ACREAGE) 32,271 34,215 34,639 34,215 32,428STATE HISTORIC SITES 21 22 22 22 20STATE HISTORIC SITES (ACREAGE) 2,573 2,676 2,676 2,676 2,557

TRANSPORTATION AND DEVELOPMENTSTATE HIGHWAYS (MILES) 16,606 16,655 16,667 16,678 16,682PARISH ROADS (MILES) 32,729 32,589 33,375 33,580 31,560CITY STREETS (MILES) 11,311 11,335 11,559 11,056 12,836BRIDGES ON STATE HIGHWAYS 7,906 8,013 7,983 7,984 7,934BRIDGES OFF STATE HIGHWAYS 4,999 5,030 5,033 5,182 5,220

PUBLIC SAFETYTROOPS 9 9 9 9 9

Sources: 1. Louisiana Department of Culture, Recreation, and Tourism,Office of Tourism and Office of State Parks

2. Louisiana Department of Transportation and Development,Traffic and Planning Section and Bridge Maintenance Section

3. Louisiana Department of Public Safety and Corrections, Office of State Police

State of Louisiana

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ACKNOWLEDGMENTS

REPORT PREPARED BY:

State of LouisianaDivision of Administration

Jay Dardenne, CommissionerBarbara Goodson, Deputy Commissioner

Desireé Honoré Thomas, CPA, Assistant Commissioner - Statewide Services

Office of Statewide Reporting and Accounting PolicyAfranie Adomako, CPA, Director of Management and Finance

Lindsay Schexnayder, CPA, Assistant DirectorJzsamanek Harold, Administrative Assistant

Financial Reporting SectionSean Langlois, Manager

Mark Rhodes, CPA, ManagerRhonda Coston, CPA

Kimberly DwinYuchi Fong

Tonia Jackson, CPALatoya McCutcheon, CPA

Katherine Porche, CPAPam Stephens

Deborah Zundel, CPA

Financial System SectionJames Lodge, Manager

Carrie ChenCarmencita Christian

Judy DavidsonHolly Ketterer

Inga KimbroughRandie Latiolais

Evelyn MylesKatie Underwood

Jennifer WellsJennifer Williams

Additional Assistance Provided ByOffice of Technology Services

All State Fiscal Personnel

https://www.doa.la.gov/Pages/osrap/CAFR/CAFR.aspx

https://www.doa.la.gov/Pages/osrap/CAFR/CAFR.aspx

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